- Normally, I applied for pre-approval from some lenders before buying a home.
- Instead, I first met with a realtor to find out where I could afford to live in the area.
- My realtor gave me some tips on choosing a lender, and I ended up signing up for just one company.
Over the course of more than two years as a mortgage reporter and editor, I learned the importance of mortgages. Pre-approval..
When mortgage lenders pre-approve you, they say they want to work with you under certain conditions. The letter will list the types of mortgages you have approved and the amount the lender will lend to you.By showing the pre-approved letter to the seller, you can usually step into other potential buyers. Please bring a letter before you start shopping at home..
However Application for pre-approval It wasn’t the first step in the home buying process — even though I thought it should be for two years. I first wanted to take another step.
I wanted to talk to a realtor before doing anything else
If you apply for pre-approval, the lender will Hard credit pull It’s yours
Meet a real estate agent To find out if my husband and I are still in a good position to buy, based on the local market... Before taking that step with one or more lenders, I wanted to
We met a real estate team recommended by a friend who bought and sold a home using these realtors for many years. I talked about the budget And what we wanted from home, and the realtors were honest about which neighborhoods we could afford to search.
They also guided us through the entire home purchase and mortgage application process at its first meeting, including additional costs that we may not have considered yet.By the end of the meeting, I was confident Ready to start the home buying process..
Then they asked if we already had the lender in mind.
Realtors have led us towards a good mortgage company
Initially, my husband and I thought we would apply for pre-approval from a local credit union. I wondered if a small community-focused company could provide excellent customer service. We talked about working with the credit unions we experienced when we bought the car. Because they gave us great interest rates on car loans.
Then the realtor told us it was probably not the best idea.
Today’s seller market is busy, fast, and many
Only works during traditional business hours. So if you need to look home after dinner and give details before making an offer the next day, you may not be able to contact anyone.
Realtors often have problems with agents when trying to call a credit union for a mortgage in the past, as credit unions often only work with members, but unless there are members, the credit unions will have them. He said he didn’t talk. ..
These are all factors we have never thought of and we are pleased that we did not waste our time getting pre-approval from a company that is not suitable for us in this market.
Instead, National Association of Realtors members said they had A handful of lenders They worked regularly and had a good experience. We have chosen to work with the lenders and loan officers that realtors used to buy their homes. We left the meeting and almost immediately contacted the Loan Officer to talk about pre-approval. Next weekend, we visited the house for the first time and prepared a letter.
My approach has become the best for our home buying journey
In the “normal” housing market, shopping for lenders and receiving some pre-approval letters was one of my top priorities. But in this market, we knew we had to act fast. It was not uncommon for homes to be listed on Thursday and to review offers on Monday — and it was assumed that the seller did not accept the early weekend offer.
Our loan officer knew that his job was good and that we work with realtors who regularly provide him with business. He was virtually in our hands, answering phone calls and texts at night and on weekends. Not only did we use him when the realtor bought his house, but a friend who recommended us to our realtor also went through him and had a good experience with him. It was comfortable to work with.
He was also able to close the house three weeks after our offer was accepted. This was one of the quickest turnaround times I’ve heard. We knew it might be attractive to sellers who want to get out of the house early.
In retrospect, I may have done one thing the other way. We asked the realtors the names of all the lenders they like to work with and applied for pre-approval for each so that they could compare interest rates and terms.
Still, I have no regrets. Buying a home in today’s market was exhausting and anxious, and having a loan officer I could count on was the only thing I had to worry about.