What is a Pre-Approval?
If this is your first time buying a home, its a great choice and super investment. After you get all your finances in order and have a little cash saved up, its a great time to sit down with a lender and get pre-approved for a loan.
Unless you are buying a home with cash, you will need to finance it somehow and most people do that in the form of a mortgage. You can seek financial help with a bank, credit union, mortgage broker or private investor.
There are pros and cons to each so lets go over them:
Banks typically have less fees but are limited to their own programs and rates. Of course you can shop many banks for the best rates but then each one would have to check your credit score and you will have to go through the same steps each time you want to apply for a loan.
Credit Unions are similar to banks in that they are low fees and have good rates especially if you are a member although they are still limited to their rates. They work for their members so getting better service and exceptional rates are their strong points. The down side is that credit unions are typically harder to get and require better credit scores to get the better rate.
This can be in the form of a seller or an investor that does this sort of thing for a living. You can usually get a loan easier but will end up paying more for interest rates in the end.
Mortgage brokers are typically the most expensive because you are paying for the service but the upside is they can find hundreds of loans to suit your needs and weed out the higher rates. You can typically get a better rate for your loan in a program that is tailored to you. You may have to pay more upfront but the long term benefits are great.
Once you find a lender you like you will want a letter of pre-approval. This is a letter to present to sellers when submitting an offer proving you can actually afford the home and have done your homework to get there. It helps sellers make a more informed decision and may actually help you get the sale.
For more information on finding the right Union County homes lender thats right for you, give our office a call today!
REAL ESTATE NETWORK: For Sierra Vista real estate services visit Century 21 Global Partners. Offering buyer and sellers information for all Sierra Vista homes and rentals.