Get Qualified for Financing

In today’s market, no offers can be submitted without a pre-approval letter from a lender or proof of funds if you are a cash buyer.  This requirement can be handled in a 10-minute phone call to a lender.  The lender will need more paperwork for final approval once you are under contract, including but not limited to: recent paycheck stubs, bank statements, credit application, disclosure paperwork and your recent tax returns.

As you can imagine, lenders have gotten more stringent in their guidelines and are no longer allowing no doc loans. The new requirements are very fair and manageable, but time is of the essence.  Once a contract is signed, the lending process cannot begin again until you’ve provided all required information to the lender. If you are serious about buying, start pulling these documents together today. Once you’ve selected a lender, they will guide you through this process and will be able to answer any questions you may have along the way. Read our 6 helpful tips below to aid you in the financial process:

Tip #1:
Local Lender

It is best to work with a local lender that is familiar with local customs and local market trends.  Communication is very important during the lending process.  Your lender should be able to provide updates to the title company and the real estate agents involved in the transaction to ensure a smooth closing.

Tip #2:
Paying in Cash

If you are a cash buyer, your proof of funds can be a recent bank statement with your account numbers redacted or a letter from your bank stating you have sufficient funds to close on your property.

Tip #3:
Shop Lenders

Shop around for a lender like you would anything else as interest rates and closing costs vary with each lender.  This could save you thousands.  Don’t rely on interest rates alone! Ever heardof the saying, “You get what you pay for?” If quality of service and an on-time close are important to you, make sure you have a solid professional working toward your closing.

Tip #4:
Comfort Means Peace of Mind

Choose a lender with whom you feel comfortable. Most real estate agents can recommend three lenders for you to start your search. We are happy to provide you with a list {link to lender list} of our top three lenders.  Our preferred lenders will help make your purchase smooth and stress free.  Shop & Compare!

Tip #5:
Cash Buyer Strategy

Some cash buyers are deciding it is better to borrow funds because interest rates are so low.  This will increase your rate of return on your investment.  Ask your accountant for advice on this strategy.

Tip #6:
Flexible Programs

In today’s market, buyers can purchase homes because the mortgage payments are now cheaper than their rent.  Ask your lender about 3.5% down payment programs.  Today’s buyers also have the potential of upside appreciation once the market clears out the foreclosures that have pulled prices to all-time lows.  This inventory is working through the system and will be gone faster than you may think!
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