Atlanta Real Estate Buyers Guide Your Lender Your Loan
Shopping for a new home or condominium is an exciting time. Looking at the neighborhoods or buildings….the backyard or the view! It’s fun! But along with the fun, there are important things that have to happen. One of those is paying for your new home! This is an important step and I’ve got it as a step right after you select your agent. Let’s talk about the importance of Your Lender, Your Loan…Let’s Tell the Truth or Else!
Selecting The Right Lender or Mortgage Broker
You already found me! I’m going to help you FIND the right home, and be there every step of the way until your Celebration Day! You decided that my knowledge of the area you want to live in was important. We’ve talked about your wants and needs (actually, that’s the next post topic!) and you decided I understood what you were looking for.
The same knowledge and understanding is equally important with your lender. But they really need to KNOW you…in a financial sort of way! They will be asking you lots of questions, and asking you for lots of documents. Get those documents to them ASAP!! And they need all of it for a reason. And there is where the phrase “Let’s Tell the Truth or Else” applies. See, if you missed credit card payments, or have any other issues with your credit, they WILL find out. You can’t hide it. Important financial “stuff” happens to all of us, but bring it up right away. Your lender can evaluate your situation and advise you the best alternatives with your mortgage.
Did you get $10,000 from Great Grandma’s trust, and deposited it in your savings account 5 months ago? And it’s still there? Your lender will need to know WHERE and HOW that money got there. Any unusual deposits, a work bonus, cash winnings from the casino…you get my point, right?
And you’ll need to show proof of income. Bank statements, pay stubs and previous years tax returns are going to be asked for. Gather these documents NOW….even if you have not met ME, or any real estate agent yet. Why?
Pre-Qualifed vs. Pre-Approved
These two terms are often the most confusing and misused set of terms in real estate financing. When you have been pre-qualified, most likely, your lender or mortgage officer has pulled your credit report, looked at the amount you told them you make and given you an indication you qualify for a certain mortgage amount. This helps you know the amount of Atlanta real estate you can shop for. But by being pre-approved, you’ve provided your lender all the documents we’ve talked about. He’s been able to review all this information in greater detail, know your financial condition, and then just be waiting for you and I to write an offer on your home! If you have met a lender, and they have NOT asked you for this information all up front BEFORE giving you any kind of number (purchase price) you qualify for…then BUYER BEWARE!!!! This is your first signal you are probably going to have problems with your loan process ahead. And I don’t want you to have that problem
That’s why I have a team of lenders for you to talk with. You can talk to one, or all of them. But I know how they work, and I know they get the job done. And in the end, we have found your perfect home, and we don’t want you to lose it over an issue with your mortgage that could have been handled in the beginning! See, I’m watching out for you already!
In today’s real estate market, homes are moving quickly. And many times, the offer, especially on a foreclosure requires you have a pre approval from a lender. Sometimes it will be a lender other than you have initially chosen, but you can still get your actual loan with the lender you have selected.
During all this process, you may find out that you qualify for MORE than you want to spend. This is an important step for both you and I to take a look at. You might qualify to purchase a $300,000 home, but maybe YOU don’t want the payment that comes with it. After looking at the number, you and your lender might find you are more comfortable with the payment on a $250,000 home. This is important for you and me, so I can make sure we look at the right priced homes, and I don’t show you more of a home that you want to buy!
Ok, next up we’ll talk about what you NEED in your new home and what you WANT!
Looking for a particular article in our Atlanta Real Estate Buyer’s Guide? Here’s the entire series!