Shopping for a house without being pre-approved for a loan is like going to the mall and leaving all your money at home.  Even if you see something you love, you can't buy it.  The approval process is so important because you will know what amount of loan you can qualify for and won't keep looking at homes you can't qualify for.  And I will know how to help you get the home you do love. 

A pre-qualification is different than a pre-approval: pre-qualification is a 5 minute phone call you make to a lender and discuss your income and debts, and based on those answers the lender gives you an amount they feel you can qualify for.

A Pre-Approval is the process of the lender taking that information, running a credit report, submitting 'you' to a lender and getting a commitment from a lender.  This is the best preparation for house hunting because you essentially have money in hand and are ready to buy.  Most seller will not take their house off the market unless they have a Pre-Approval letter in hand.

A Pre-Approval letter from a lender should include the terms of the commitment the lender is willing to loan you the money; interest rate, term of the loan and the period the commitment is good for.   It will then be subject to getting an appraisal, and verifying income, employment, credit and assets.

When shopping for a lender, it is important to find one who will work hard to get you the best rate and financing that fits your criteria.  Be sure the lender is willing to put in writing, in advance, so there won't be any surprises when you find your house and want to close.

It is smart to shop your rates, but not to the point of exhaustion!  Two or three lenders should be able to give you substantially close rates and costs. The difference is what the lenders charge for closing costs and loan fees.  When you call, ask them to send you a good faith estimate.  This will detail all the loan costs and you can see any differences in fees between lenders.  It is a federal law that a lender is to supply you with this estimate upon formal application for a loan.  So any lender not willing to provide this up front is not giving you good service.

Both are excellent Loan officers I have worked with and have proven to give excellent service are listed below.  Give either a call and get the process started.

 Click on Annie at M&I Bank                                            or Carol at First Horizon

In the wake of the credit crisis, lenders have become much pickier about whom they lend to. Here are some basic facts that will help potential borrowers understand what they face.

The measurement that most lenders use to assess applicants’ credit risk is the FICO score developed by Fair Isaac Corp. The score ranges from 300 to 850.

There’s not one FICO score. Buyers have three: one for each of the three credit bureaus, Experian, TransUnion and Equifax.

Each credit score is based on information the credit bureau keeps on file. Since credit bureaus don’t share their data with one another, the three FICO scores may differ, sometimes by as much as 100 points.

The components of a FICO score are:

• Payment history: 35 percent
• Amounts owed: 30 percent
• Length of credit history: 15 percent
• New credit: 10 percent
• Types of credit used: 10 percent

A consumer with a 580 credit score might qualify under FHA requirements, but, generally, in order to qualify for a prime loan, a borrower must have a credit score above 620 for a conventional loan at all, and above 720 for a loan at terms and rates most borrowers would consider desirable.