Hello Abby,

GREAT QUESTION-

I just wanted to follow up with your question, did you end up getting your pre-approval? I recommend sticking to one pre-approval. The reason why if you go get 3-4 pre-approvals and you don't find a house before they all expire, than you might of potentially lowered your Credit score. If you inquiry for a loan and don;t take it can potentially hurt your score. Also, the rate you get pre-approved for might not be the actually rate if you don't find a property quickly. I do a lot of pre-approvals, I recommend getting one, find the property than shop around.

Mark Zarse
mzarse@hydeparkbank.com
617.592.8322

Abby,

Treat this no different than buying a new car......shop around. Even though the product will be the same there are entirely different programs and rates to be considered.

IMPORTANT: as you interview different lending institutions be sure to request a "good faith estimate." This is a written account of the programs and rates quoted to you.

Good luck

It will make the process less stressful if you get pre-approved either before or during your property search. That way if you find a place you want to make an offer on right away you wont have to take the extra couple days to get pre-approved, risking other offers coming in and someone else getting the property. If you use a mortgage broker they would shop you around to different banks, but if you plan to go direct it's always good to have options.

Abby:

The Housing and Urban Development (HUD) website provides an excellent booklet titled "Looking for the best Mortgage". If you follow their recommendations you'll be informed and ready to work with lenders and secure your pre-approval.

Knowing that you have pre-approved funds, and a verified price range, will make the process of looking and making offers a much better experience.

You need to get a good pre-approval. Someone needs to verify assets, income and credit. A simple credit approval is not enough. You should work with your loan officer through the whole process and preferably have an application submitted prior to tendering an offer. A good pre-approval can also be a strong negotiating tool.

Unfortunately, many buyers get a weak pre-approval and only worry about the financing after they have an accepted offer. By then, you are moving so fast to get the loan done that you don't always end up in the best situation. If the financing piece is done simultaneously to looking at properties, it will minimize last minute surprises and you will also not have to run around like a chicken with your head cut off.

There are many problems that can be avoided by dealing with financing early, like...
Correcting Credit Score Issues
Securing proper Documentation
Fully understanding what your interest rate will be based on credit and down payment
Seasoning of Funds

Other things that can be issues that people don't realize are...
Undocumented Income
Gift Money
Overtime

Check with several.

I am a mortgage broker. If I can be of service, please let me know!

Martin Smith

Precision Funding
877-238-6324 Ext 704
513-536-7184
877-238-6324 FAX
MSmith@PrecisionFundingUSA.com
http://www.PrecisionFundingUSA.com

It is always a good idea to get several opinions when looking at financing terms and conditions...Good luck

Hello, Abby,
I strongly recommend to talk to a Mortgage Consultant at the very beginning of your search. To get pre-approved, you will need to present your income and assets. The Mortgage Consultant will tell you how much of a mortgage you can afford. This will make your search for a new home easier. Please, make sure to have a full fledged pre-approval letter issued based on the documentation you present versus a pre-qualification letter based just on a conversation with the Mortgage Consultant. If you are pre-approved and have a letter, it makes your offer much stronger when you are ready to make one. Getting financing for purchase of a home is a difficult and lengthy process. I would not go shopping around different lenders, but would ask friends and people whose opinion you trust to recommend one. Please, note, that not only interest rate is important but other conditions of the loan as well. You also might want an assurance that you deal with a person who is involved every step of the way and provides high level of service. The last one you can assure only if you go to a person who is recommended.
Good luck!

Hi Abby!

Great question! You only need to be pre-approved by one bank, credit union, mortgage company, lender etc....just make sure it is a reputable one (i.e. be careful if you are thinking of getting pre-approved online).

And, yes, it is an excellent idea for you to get pre-approved before you start looking. This way, you know where you stand financially, and there will be no "surprises" when you find the house of your dreams. Additionally, sellers will be looking for a copy of your pre-approval letter with your offer.

While the institution that pre-approves you would love to have your business when you actually apply for the mortgage, you are under no obligation to use that institution.

So those are the basics...hope that helps!

Judy Boyle
Weichert Realtors
Central MA