After committing to SRG comes the vital Step 2- Getting Pre-Approved.
If you're already pre-approved, great! if not, read on!
Getting started with a lender is almost as important as finding your realtor. The goal with a lender is twofold: 1) To bring them into communication with your realtor. All of us work together to make sure your home buying experience is as simple and successful as possible. 2) To get pre-approved for a home loan so we can know your loan amount and type.
Home loan pre-approval in todays market is a must. Sellers often require a pre-approval prior to viewing their home. Without an approval letter we would be in a disadvantaged position upon finding your new home. Lenders also go over loan programs available- from zero down to low down to a more traditional 20%. Lenders also work with you to figure out your cash reserves and whether you will pay for your closing costs - or ask the seller to. Anything is possible, and working with a great lender will ensure you get the program that works best for you.
Credit Score & Income
The lender will be the best source for information on qualifying for a home loan. That said, you'll want to have a credit score above 600. You will also want to have at least two years' work experience in the same field OR perhaps an employer's letter stating compensasion if you've just left school and got a job in a relatable field.
The goal with the lender is to:
Communicate with your agent about your max purchase price, find your best loan type, and whether you need closing cost assistance, down payment amount, things like that.
As part of the home buying process, it's best to choose a lender early on and get pre-qualified.
Here's how getting pre-qualified early can benefit you:
You can be more confident in your purchasing power. Then you can look at homes that are in your price range, which makes sure our search is as efficient and effective as possible.
The earlier in the search process that you speak to a lender, the sooner the lender can help you with steps that may help improve your credit score and interest rate. You'd be surprised at what 2 months can do to improve a credit score! Even those with great credit can generally improve a little - which can mean a lot on a 15 or 30 year loan!
Getting pre-approved before making an offer will allow make you a stronger buyer. The strength of buying power often comes up when sellers are reviewing offers. In fact, MOST SELLERS WON'T ALLOW SHOWINGS for non-qualified buyers.
If you don't have any lenders in mind, here's our team's top lenders we've use personally and would recommend to anyone!