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Highlands Ranch, CO 80129

303 668 5840

Thopkins@remax.net; Roger@rogerandjeri.com; Lhopkins@remax.net

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Steps To Buying A Home – Step 2 – Financing Application & Pre-Approval

Steps To Buying A Home – Step 2 – Financing Application & Pre-Approval

Today we’ll be talking about the second step in buying a home, getting financing and obtaining a lender’s pre-approval.

Getting a “pre-approval” letter rather than just a “prequalification” from the mortgage lender is an essential step to buying a home. What’s the difference? Pre-Approval requires a full loan application, verification of your credit as well as a review of all of your financial documents. All these items are reviewed to insure that they meet strict lending guidelines. It takes more time and effort but will save you heartache later.

Aside from helping you determine a price range for your new home, being “approved” shows sellers that you are serious about purchasing a home and it helps the process move smoothly and more quickly towards your home purchase. Having a pre-approval letter can also tip things in your favor in a tight housing market, like we’re currently seeing in the Denver Metro area.

When thinking about moving into a new home, you’ll want to make sure that you know your credit score. Generally speaking, the higher your credit score is the lower your mortgage rates and monthly payments will be. It is recommended that you review your credit report with your lender and discuss anything that appears to be inaccurate. If your credit score is on the lower side, it is a good idea to begin working with a lender that has useful strategies for increasing your score such as paying off key debt and making sure bills are paid on time. You may also want to avoid applying for new credit (so you may want to hold off on buying that new car or furniture until after your home purchase) while you are in the home buying process, as applying for credit can actually lower your credit score.

As your local RE/MAX agent, I can walk you through how to make sure you are ready for everything involved in the home buying process. Let me show you how I can help. Please send me an email or give me a call and let’s open the door to your dream of home ownership.



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