The mortgage business has gone through many changes in recent years with the ongoing effects of the credit crunch resulting in less products to offer and significantly tighter guidelines in general. The days of easy credit with no down payment and minimal documentation are history. With this in mind, it’s more important than ever for homebuyers to get “Pre-Approved” – not just “Pre-Qualified” – in order to avoid the kind of painful last-minute surprises that can blow up deals. While this is a bit more work upfront, when you are ready to make an offer on a home, an experienced listing agent and seller are always going to lean toward a financed offer when the buyer has a loan approval attached with the offer.
Although it can be uncomfortable and invasive, your loan officer should be asking lots of questions on everything and really digging deep in to every aspect of your file right up front. As the pendulum continues to swing, underwriting is not getting any easier any time soon. Whether you are a first time buyer or a seasoned investor that has not bought for a few years, be prepared to provide more documentation than you would ever think of needing when starting the loan pre-approval process. In fact, if you are not being asked any tough questions it may be cause for concern.
There is no way to guarantee a flawless transaction every time, but by really going through a thorough pre-approval most issues can be addressed up front and help insure the best experience possible. Keep in mind that a loan pre-approval is highly recommended before you start searching for a home. This way, you will know the best type of loan program, mortgage payment, home search price range and loan terms, prior to making an offer on the home of your dreams.
If you have any questions about this topic or any aspect of the mortgage business please don’t hesitate to call.
Senior Loan Officer
Nova Home Loans