Loan Qualification
Once a buyer has fixed any problems on their credit report, it’s time to contact a mortgage loan specialist at a bank, credit union or mortgage company. DO THIS BEFORE YOU CONTACT A REAL ESTATE AGENT. There’s no point in wasting your time or the agent’s time to look at properties if you don’t know your likelihood of obtaining a mortgage loan, or the size of that loan.
Some pitfalls a buyer might face when applying for a loan include:
To streamline the process, bring the following items to your loan officer interview:
They will review your credit report online. The documents will give them more confidence in writing a Pre-Qualification letter, and they will have all the information they need to submit your information to a lender for Pre-Approval.
A Pre-Qualification letter from the loan originator will state something to the effect that after speaking with the client and reviewing their credit history, they believe the individual will be approved for a <insert dollar amount> mortgage loan. This is a good letter to submit with your purchase offer because it indicates that you have at least spoken to a loan professional, but it’s not the best option.