To improve your bargaining position, you should get your loan squared away early. Proof that you are financially-qualified to purchase the home greatly increases the odds that the seller will accept your offer. In some cases, sellers choose one offer over another higher priced offer because they are confident the buyers of the lower offer can perform financially.

You might want to talk with more than one lender because every lending institution has different loan packages, rates, and qualification criteria. Good lenders act as loan counselors. They will ask you questions to learn your financial situation and recommend the loan programs that best suit your needs.

Once you decide which lender you want to work with, go ahead and start the loan process. Give the lender all the information they ask for plus permission to run credit checks. With this data, the lender can provide a letter indicating you are prequalified for a loan and have credit approval.

If you are serious about buying a home, I suggest you take this one step further and get preapproved for a loan. This involves submitting a written loan application and lets the lender start the loan underwriting process. If you are self-employed or work on commissions, you may have to show your tax returns.

Being preapproved for a loan makes you look like a cash buyer in the eyes of the seller. This can give you a distinct advantage over another buyer who is interested in the same property.

8 Great Reasons To Get Preapproved For A Loan

1. You will learn which loan program best fits your needs.

2. You won't waste time considering homes that you can't afford.

3. You will be ready to write an offer when you find the home you really want.

4. You can give the sellers a Preapproval Letter along with your purchase offer.

5. In today's market, preapproval puts you in a better position for negotiation.

6. You will know how much money you need for down payment and closing costs.

7. If you are a first-time buyer, you may qualify for special programs that allow you to purchase more home for your money.

8. Peace of mind.

Recommended Lenders

Below are the three best loan representatives I know. You may use the services of one of these lenders or choose any other lender you like. I don’t make a dime from any lender. I recommend these lenders because, over many years, both my clients and I have found them to be highly professional.

Julie Grove-Miller - General Mortgage
Work: (858) 759-1112 or Pager: (760) 740-1418
E-Mail: Julie@fgrouponline.com

Cheryl Gregory - General Mortgage
Work: (858) 204-4107

E-Mail: Cheryl@fgrouponline.com

Brian Ellis - Countrywide Home Loans
Cell: (858) 829-1977
E-Mail: fourseasons.brian@gmail.com

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