When you’re serious about buying a home, it is very important to get Pre-Approved for a loan. In the past a pre-qualification was fine, but with the current challenge of getting a loan, it is imperative that you get pre-approved.

A pre-qual was really nothing more than a lender taking a little information over the phone, briefly running the numbers, and then issuing a letter stating that you have been pre-qualified for a loan.  It really isn't worth the paper it's written on.  In today's market, many deals are falling out of Escrow because the buyer cannot get financing. This is why most listing agents (the agent representing the Seller) require a pre-approval letter from a lender before they will even consider an offer. A pre-approval is when the lender actually pulls the buyers credit, reviews bank statements, tax returns and any other related documents. This way, they have a much better idea of the Buyer’s buying power.  It's also a good idea for the Buyer, because the Buyer will know what they can and cannot afford.  It can be frustrating to look for properties in one price range when you can actually afford something less.

If you need a recommendation for a lender to get pre-approved so that you know exactly what you can afford, please email me or call me at 818-324-2665.