The home buying process has changed somewhat over the last few years. Here's the way it worked previously. The buyer would go home shopping and pick out a home that they wanted to purchase, negotiate a contract, and then go and talk to their local bank to secure financing. Most financers required twenty percent down payment plus closing costs. That has all changed.

In today's real estate market, pre-qualification with a lender is almost a necessity, and it can save you money. In many cases a seller won't even consider an offer without, at least, a pre-qualification letter. Delivering a pre-qualification letter (or, better yet a pre-approval letter) with your offer shows a seller that you are in a position to purchase the home and improves your bargaining position. In a situation where multiple offers are being considered, pre-approval could be the determining factor as to which offer a seller chooses to answer.

The pre-qualification process is simple and easy. Many lenders can pre-qualify you over the phone or over the internet with general questions about your income, debt, assets and credit history.

To move to the next step in the financing process, pre-approval, you will need to actually apply for a home loan. You will fill out a lender supplied application.

The lender will verify employment, run credit reports, verify assets, etc. When you complete the pre-approval process you will know the exact amount you will be allowed to finance. The entire process should take less then a week.

You no longer have to go to your local banker to obtain financing. There are a multitude of options including banks, credit unions, mortgage brokers, and online companies.

Financing options are varied as well. There are special loans for first time home owners, veteran entitlement loans, 80-10-10 loans, 5 percent down loans, ARMs, Reverse loans, and many other options. Your lender should assess your personal needs to determine the appropriate route regarding financing.

A Few Quick Tips

Shop around for the best rate but beware of hidden fees.

Check out lenders with the Better Business Bureau.

Specialty loans are best served by lenders that have experience with that loan type.

Make sure the lender you are working with is legitimate and competent. 

We will be happy to make recommendations of possible financing options for you to pursue. We work with several local lenders that can handle your specific home loan requirements.

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