SO YOUR PRE-APPROVED, WHAT DOES THAT MEAN

Everyone knows that getting a loan today is dramatically different than it was 12 months ago.

Today all prudent Buyers should be pre-approved by a reputable mortgage professional before stepping foot in any house. Of course that pre-approval is no guarantee that you will be given a loan to purchase your new home.

As a matter of fact banks are now waiting until the 11th hour to tell Buyers they don't qualify leaving them with out of pocket appraisal fees, application fees, attorney fees and homeless.

If you are a Buyer here are some handy tips when you decided to purchase a home:

1. If you are working with a REALTOR ask that professional who they would recommend, I can assure you no REALTOR in their right mind is going to spend time showing someone property that has an "iffy" pre-approval letter.

2. When you meet with the mortgage professional be completely honest, don't try to paint a better picture than reality. If you only have $500 in cash or have only been at your job for 1 year and 8 months, be honest.

3. Take a look at your credit report with the mortgage professional, most are prohibited from giving you the report, but you should know what it says.

4. Before you arrive at your appointment have two years W-2s, a fairly accurate estimate of cash on had and investments, and your most recent paycheck stub.

5. Understand that the interest rate you are quoted is a function of your credit score, income and expense, amount of down payment, and even work history. You are completely and totally responsible for your credit score. And if something on the report is incorrect it is your responsibility to correct it.

6. Get your pre-approval letter in WRITING, with a list of any remaining items needed to get your loan approved.

7. And don't be afraid to shop around not all banks and lenders are the same, all have different minimum credit scores and requirements for many of the same types of loan programs.

8. Once you have found a mortgage professional with a loan program you are happy with get a Good Faith Estimate in WRITING so that you know how much money you are expected to have at closing and what the fees will be for your loan.

9. And finally keep in touch with your mortgage professional on a weekly basis. Check-in to see the status of your loan, ask if additional information is needed, and when the mortgage professional asks for documentation get it over ASAP, that is key. And if things are starting to head south, let your REALTOR know immediately, he or she can step in and help you out.

If you are considering a purchase or just have questions about the market or mortgage process please give Owen a call at 843-224-5398. Owen is a preferred REALTOR with several reputable mortgage companies that offer discounts to his clients on purchases and refinances.