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 Marin Modern Real Estate Agent will be able to help you select appropriate homes for viewing. Preapproval 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 prequalifying 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 Marin 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 Marin County. You might want to talk to two or three different lenders to find a mortgage package that suits your individual needs. Ask your Marin Modern Real Estate Agent for recommendations.
Contact us if you'd like to receive local lender referrals for your Marin home purchase. We have extensive experience and success networking with direct lenders and mortgage brokers in Marin County (including local lending experts, Pinnacle Capital Mortgage) and would welcome the opportunity to refer you to excellent lenders that have helped many of our clients in the past.
Marin Home Buying Steps1. Establish a Budget
2. Obtain Loan Pre-Approval
3. Engage Your Marin Modern Realtor
4. Preview Homes
5. Make an Offer
8. Finalize Loan
10. Collect the Keys!
Once you've secured loan pre-approval, you are now ready for the third step in the home buying process: Engaging Your Marin Modern Realtor.