Page 5 - 7 step guidebook for buyers 2018

5

Get pre-approved for a loan with a lender you can TRUST

Ok, here there is always confusion. Pre-qualified is very basic, it’s all
based on whatever information you provide to the lender. Nothing is

verified, not even a credit check. It’s good info for you if you’re honest
with the lender and know your credit score, but it doesn’t hold much

weight with a seller.

You need to get pre-approved. Pre-approval is much more involved, but
you will be in a much better position to engage in negotiation. You will
need to complete a mortgage application (form 1003 is the industry

standard) and back it up with documentation (credit checks,
employment verification, proof of income, verification of funds, debt

ratio). This is a key step, don’t skip this. If you find THE ONE, and you
haven’t been pre-approved, you may lose the property to someone who

has done their homework.

Interview several lenders, ask friends for referrals, ask real estate agents,
ask, ask, ask! This is where most deals go sideways, with the financing.

If you have someone who is qualified and competent at their J-O-B, you
will avoid a lot of heartache. I’d rather have a lender be truthful with me

and tell me what I need to hear rather than what I want to hear. If
someone is telling you what you want to hear and it doesn’t seem right,

they are probably hoping they will call in a few favors to get your deal
done. Don’t waste your time with this person, move on, find someone
you can TRUST.

There are generally 3 types of mortgage loans; Conventional, VA and

FHA. See our pamphlet on mortgage loan comparisons here.

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Caruso Downtown Real Estate 425 10 Ave, San Diego CA 92101 619-708-5478 Pete@CarusoDowntown.com
CarusoDowntown.com