Be Ready With Your Mortgage Pre-Approval
If You Want an Advantage When It's Time to Buy
A phone call came in from a prospective home buyer. They wanted to get pre-approved for a mortgage. Their realtor had advised them that they needed a Pre-Approval Letter in order to submit an offer on a home they had viewed and fallen in love with.
Time was of the essence, as they hoped to submit their offer to the home's Seller immediately. Interest in the home was high and they were sure there would be multiple offers made.
We shot from zero to 60 mph instantly. And right out of the gate, these home buyers were experiencing stress regarding their mortgage financing.
Now I completely understand that potential buyers might start a home search and view properties casually when they first being the home buying process. It's their way of testing the real estate waters, so to speak.
And I also understand that while casually viewing homes, a portion of those prospective buyers come upon the "perfect home" that triggers their need for more serious financing answers and actions.
But in the majority of cases, that is not and should not be the case ...
As a result, the process of seeking and securing mortgage financing should be more measured and methodical. It should be prepared for, planned for, and executed in stages. When conducted in this proactive manner, the mortgage process is far less stressful for borrowers and they avoid much of the stress and panic that my new clients felt so keenly over the weekend.
This more measured and methodical approach is a distinct advantage to lenders too. It allows them ample time and opportunity to ask their prospective borrowers more questions and gain more detailed information ... an advantage that should not or cannot be overlooked or minimized.
When given time, a lender can perform a more thorough examination of financial information, credit reports, subject property (and more). And that, in turn, means more dependable information provided by the loan officer to their clients and agents ... and fewer issues arising moving forward.
It's a fallacy that, in the current mortgage process, Pre-Approvals and Pre-Qualifications are a simple thing to provide. If performed properly and reliably, they are not. There is much info to gather and consider. Information, preparation, and execution all greatly matter ... as does your choice of Loan Officer.
Because of this, potential home buyers (and those refinancing), should allow ample time for loan officers to gain all the detailed information needed for a Pre-Approval Letter. Time allows a loan officer ample opportunity to conduct an in-depth analyzation and opportunity to seek further info from their client if needed. The results are far better for all involved.
As an example ...
Most importantly during this conversation: I was able to obtain his financial information and was then able to pull his Credit Report. This resulted in my being able to issue a Pre-Approval Letter quickly and easily on the day he wished to make an offer. We sailed right through because his proactive actions paved the way for a fluid Pre-Approval and successful, less stressful mortgage process.
As an example ...
A first-time home buyer was referred to me by his father, an acquaintance of mine. This young buyer reached out to me initially via email. He then followed that exchange of information up with a phone call.
This young buyer related to me that he'd previously communicated online with 2 other lenders and had even sought Pre-Approvals from them. I liked that he had acted proactively, but unfortunately, neither lender had reached out to him in return. They had not provided him the information he gained during our phone conversation together.
Some of that important information included:
- Detailed information about financing a Condo
- Substantial info regarding the Transfer Tax Fee he would incur because of his Condo city/location preference
- A breakdown of his prospective Closing Costs
- How his Interest Rate would be affected by his Credit Scores, Down Payment percentage, and Debt-to-Income Ratio
- The cost of his (required) Private Mortgage Insurance
- That a Seller could be asked to contribute/offset some or all of his Closing Costs
- That his search for a condo (and subsequent information regarding the property) could be better served by a Realtor
- A referral to a local experienced Realtor
- More ...
Bottom line: Don't go home shopping before you get Pre-Approved for your financing. The stakes are too high to NOT take proactive action when you're hoping to buy and finance a home.
The present real estate housing market does not allow for hesitation or poor preparation. Time, money, and a home you love can be lost if you wait too long.
Commit yourself and the time needed to a proper mortgage search ... starting with a thorough search for an experienced knowledgeable loan officer. Start that search early. Talk to that loan officer months ahead of when you hope to buy or even start a preliminary search for a home. The more time you allow, the better.
If buying or refinancing a home or investment property in the Chicagoland - IL - WI area, I'd love to hear from you.
Contact Me! I'll put my 40+ years of mortgage experience and expertise to work answering your questions and fulfilling your financing needs.
I'm easily found at:
Gene Mundt
Mortgage Originator - NMLS #217987 - IL Lic. #031.0006220 - WI Licensed
American Portfolio Mortgage Corp.
NMLS #175656
Direct: 815.524.2280
Cell/Text: 708.921.6331
eFax: 815.524.2281
Gene Mundt, Mortgage Originator, an Originator with 40+ years of mortgage experience, will offer you exemplary mortgage service and advice when seeking: Conventional, FHA, VA, Jumbo, USDA, and Portfolio Loans in Chicago and the greater Chicagoland region, including: The Lincoln-Way Area, Will County, (New Lenox, Frankfort, Mokena, Manhattan, Joliet, Shorewood, Crest Hill, Plainfield, Bolingbrook, Romeoville, Naperville, etc.), DuPage County, the City of Chicago, Cook County, and elsewhere within IL & WI.
Referrals are Greatly Welcomed & Appreciated!
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