Getting financing

Knowing your purchasing power is probably one of the most important factors in buying. It is imperative to have your financing in order prior to beginning to actively view properties. Especially in this volatile market, having a full pre-approval for a mortgage has never been more important. It could make all the difference in whether or not you get the property you want.

Types of Financiers

1. The first is the banker, or mortgage department of your local bank. Obviously, the loan originators here work for that specific bank. In this case, you would be dealing directly with the bank granting the mortgage. You would need to qualify for one of the loan programs being offered exclusively by that institution.

2. Next, we have the mortgage broker, who acts as more of a liaison between the actual lender or bank and the buyer. A mortgage broker does not have the ability to authorize a mortgage nor your actual ability to obtain one. Instead, they would pass your information on to a bank and wait for a response from them. You would have a greater pool of loan programs to choose from depending on the banks that broker deals with, but less knowledge and control of the goings-on until you get the actual approval or denial of the loan.

3. Finally, there is the mortgage lender. This is someone who would have the capability to issue a pre-approval or loan commitment directly. In addition to having the ability to grant a mortgage, a lender will shop around with different banks and other financiers in order to find the loan programs best suited to the buyer's needs. This offers you a far greater variety of programs and loan options, rates, etc. and the knowledge that the person you are speaking with has greater control and knowledge of goings on throughout the process.

Getting Pre-Approved

A pre-approval means you have already submitted a loan application and most of the necessary paperwork to obtain a mortgage. Your credit has been checked, and your mortgage is already essentially approved. All we'll need to do then is find your new home. From there the lender will order an appraisal of the property, review the Purchase and Sale Agreement, and and verify that "clean" title to the property is able to be transferred.

Being pre-approved gives you a distinct advantage when making an offer on a property. A seller is more likely to accept an offer when they know you won't have a problem getting financing. It also makes the process much easier on you. Once you find a home, you'll want to concentrate on planning your move, not worrying about whether or not your loan will be approved.

Where to start

I work with several excellent lenders who would be more than willing to speak with you and discuss your options. If you are interested in getting pre-approved, click here to let me know, and I will give you the contact information of some lenders with whom I regularly work.

Charissa Pemper, Boston REALTOR®

Charissa Pemper
Lic. MA Real Estate Broker, REALTOR®
Charissa@HomesInBoston.com