Loan Pre-Approval

A loan pre-approval is a written letter stating how much money a particular financial institution is willing to loan to you. Here are several reasons why you should go no further without getting pre-approved:

  • It's quick and easy. Ask for references from your Agent, Friends and Co-workers. Evaluate several loan officers (3 or more) to see who has the best rates, the lowest fees, and will work well with you through closing. Always ask for a "good faith estimate" when shopping for loans. Are there pre-payment penalties? Is there a way to avoid paying PMI (Private Mortgage Insurance) with say an 80-10-10 loan (80% loan, 10% 2nd trust, 10% down).
  • By learning about different loans you may qualify for loan packages that will get you into the house of your dreams.
  • Don't waste your time by looking for a house in the wrong price range. You need to know the current market rates, points and fees to accurately determine your purchasing power.
  • This simple step will save you much time and energy and will put you in an excellent position to move quickly into a solid contract that will get you the house you desire.