Choosing A Lender

The lender that offers the lowest interest rates may not be the most suitable for you. Remember to look at the entire loan package that the lender is offering. Is the lender charging me considerably higher fees (points, origination fees)? Is the lender approved in my local area? Does the lender offer competitive loan packages? Does the lender have a solid reputation?

Getting Pre-Approval

It is highly recommended that you get pre-approved for a loan. Pre-approval for a loan is a formalized process that can facilitate the loan application process. Pre-approval is a commitment on the part of the lender to provide you with a specific loan amount; however, it is not tied to a specific house. The lender will perform a detailed review of your current financial status, and you will need to provide the lender with documentation on income and debt-related information. If you are pre-approved, it means that the lender has thoroughly reviewed your financial history, evaluated your risk, and decided that you have the ability to pay back the loan. While a pre-approval is not a requirement, it is advantageous for you to obtain a pre-approval letter from the lender. This makes your case much stronger in the eyes of the seller. In a competitive real estate market, presenting this letter to your real estate agent and to the home seller may assist you in securing a contract on a home. Since the lender has pre-approved you for a mortgage, the seller can be assured that you are serious about your offer and that the contract is less likely to fall through.

Call me with any questions you may have.

Gabe Pesina
720-252-5843
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