If you’re a buyer, when should you get a pre-approval from a lender? Buyers ask me this a lot. Today, it is important to get a pre-approval or pre-qualification letter from a lender right away, i.e., as soon as you begin looking at homes.
Talk to a Few Lenders
You’ll want to talk to a few lenders about what kind of loan programs are available before you fall in love with a home you can’t afford or you feel too rushed and emotional to evaluate your options.
Many programs that were available in the past or even last summer are gone. It is more difficult to get a loan now, and it is more difficult to keep a loan package together than in the past, so it is important to review your options with a professional. That being said, if you have good credit and some money to put down, there are still a great variety of choices available to you.
One more thing to keep in mind: you may end up being pre-approved for a purchase price that is much more than you would have expected. Keep in mind that what the bank says you can buy and how much you want to spend may be two different things. Many buyers borrow less than they are pre-approved for because they don’t want to live a lifestyle teetering on the edge of default. This approach has always made sense, but today it is especially important.
Local Lender Recommendations
If you would like some recommendations for lenders I like and regularly work with, email me at lauracannon@kw.com, and I will send you their contact information.
