Talk to a mortgage lender

I had a former co-worker call me the other day. She isn’t local, and she isn’t a San Diego homebuyer. Nevertheless, she wanted to touch base because she was ready to put an offer on a home in another part of the state. This former co-worker had done all of her research and wanted to write an offer on a property immediately. However, she hadn’t been pre-qualified by a lender. Actually, she had been pre-qualified a few years back, but she hadn’t been pre-qualified lately. Lately is the operative word in that sentence.

Whether someone is a local homebuyer or a homebuyer in another part of the United States, they definitely need to secure lender pre-qualification or even pre-approval before shopping for homes for sale or before writing an offer. Of course, that’s not the case if they are paying cash for the property that they want to purchase.

A pre-approval or pre-qualification from two years ago is not going to do the trick when someone is buying a property now. Lender programs and guidelines change all the time. Additionally, a buyer’s personal financial situation changes as well. Both of these factors make it necessary to continually update that pre-qualification or pre-approval.

What’s the difference between a pre-qualification and a pre-approval?

A pre-qualification letter is issued by a lender based on a brief telephone review of a stated financial situation. A pre-approval is based upon a review of submitted financial documentation, and is more official and complete. It is entirely possible for a person to have a pre-qualification and later learn after a review of the documents that they are not approved for the loan. It may be because the facts on paper do not provide evidence of what came up in the phone conversation when the pre-qualification was issued.

A local Realtor can provide homebuyers with the names of some professional lenders whose programs may meet their personal needs. Since agents are constantly working with lenders to get deals closed, a real estate agent is a great source for a lender referral, especially for a lender that can get the deal closed in a timely manner.

If you or anyone you know is seeking to buy or sell, we can help. Feel free to contact me.

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