Need to Know More About Mortgage Loan Pre-approval Process?
If you’re a real estate agent, you probably spend time educating buyers about what they need to do to increase their chances of finding a home they both love and can afford. One of the most important things buyers can do to help you do your job better is to get preapproved for a mortgage loan. When talking with them about the process, be sure to cover these six things:
- The benefits of a preapproval — For buyers, having a preapproved mortgage loan means they won’t waste time looking at homes they can’t afford. It also provides buyers with peace of mind knowing they can make a quick offer to grab a home they love, and that their offer may carry more weight with the seller since they have financing in place.
- Shopping for lenders — Mortgage rates, loan options and qualifying criteria vary by lender, so encourage potential buyers to speak with several lenders to get the best rate and terms.
- Help keep things organized — Applying for a mortgage requires lots of documentation and meeting deadlines, so it’s helpful if agents provide buyers with a checklist to keep things organized. Remind your buyers that lenders often want historical financial data, so they should start searching for that information and keep it handy.
- Look for houses in their price range — Although being preapproved for a loan helps to narrow the home search, some buyers will still want to look at pricier homes in hopes that they can work something out. Try to get them to focus on homes they can afford so they don’t waste time or become disappointed in the process.
- Focus on the long-term — if your buyer is turned down for a mortgage loan, let them know that if they do the work to repair their credit, they could be approved a few months later.
- Keep the expiration date in mind — Most preapprovals have an expiration date and then must be renewed. Remind them that once they are approved, they need to focus on their house hunt to take advantage of the preapproval, or they will have to start all over again with the application process.
The attorneys at Jurado & Farshchian, P.L. combine their knowledge and experience in Florida real estate law to represent both buyers and sellers of Florida real estate. Contact one of our experienced Florida real estate attorneys at (305) 921-0440, or email us at email@example.com.