Yesterday we talked about the first step in buying a home: the Initial Consultation. Today we talk about the best way to go about getting qualified for a loan.
Step 2 - Loan Consultation - Your agent will provide you with guidance in finding a financial institution, recommend a qualified local mortgage adviser versed on the types of loans you might need (TIC, FHA, VA, etc, there's a whole alphabet soup of loan types), and support you in obtaining information on all the different financing options (and believe me, the options change weekly). A licensed mortgage broker can help you determine a realistic range of affordability and can provide you with a letter of pre-approval.
It's important to get pre-approved before you start looking for homes. Consider it your license to go hunting! Without that piece of paper, you're not really certain that a bank will give you a loan, and these days, it's important to submit all of your paperwork to a lender to make sure the bank will qualify you. There's nothing worse than finding a home you love and then finding out you cannot qualify for a loan to buy it!
Tomorrow: Step 3 - The Loan Application Checklist