Obtain Pre-Approval For A Home Loan

The second step in the home buying process is to secure funding for your home loan so you can shop with confidence.

Getting pre-approval for a real estate loan gives you credibility as a buyer and can save you time, energy, and disappointment. By knowing exactly how much the lender is willing to loan, your Bay Area Modern real estate agent will be able to help you select appropriate homes for viewing. Pre-approval may also help to improve your bargaining power and facilitate a speedier closing. Since pre-approval involves actual underwriting of your income and credit history, it provides a clear sense not only of loan size but of the loan terms and rate you would qualify for. Potential hurdles, including questionable postings on credit reports, can be addressed upfront so that you qualify for the best loan. Pre-approval also allows for accurate breakdowns of what your monthly outlay would be on a prospective purchase.

Do not confuse pre-approval with pre-qualifying for a loan. With pre-qualification, a lender is offering an informal assessment of what they are likely to lend, based on basic information you provide about your finances. Pre-approval is a formal process that generally involves the lending institution requiring formal documentation of your financials (i.e. recent pay stubs, bank statements, tax returns) and delving into your credit history.

In choosing a lender, be sure to deal with a financially sound, reputable company offering competitive rates. Additionally, there are benefits to working with a lender that has local representation in the Bay Area, since they will be more familiar with the dynamics of the local real estate market and will typically use appraisers that are well-versed and current on property values throughout the Bay Area. You might want to talk to two or three different lenders to find a mortgage package that suits your individual needs. Ask your Bay Area Modern team for recommendations.

Contact us if you'd like to receive local lender referrals for your Bay Area home purchase. We have extensive experience and success networking with direct lenders and mortgage brokers in the San Francisco Bay Area and would welcome the opportunity to refer you to excellent lenders that have helped many of our clients in the past.

Once you've secured loan pre-approval, you are now ready for the third step in the home buying process: Engaging Your Bay Area Modern Agent.

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