These are the checklists related to Pre-Showings: Qualify with Lender.
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- Complete "Pre-Showings: Qualify with Lender" checklist
- Ask Real Estate Broker for list of possible Lenders
Ask your Real Estate Broker to suggest 3 possible Lenders to contact for financing your home purchase based on the types of loans you're considering.
You're welcome to use whichever Lender you choose (from the Real Estate Broker's recommendations or your own), however... you should realize that making sure your Lender performs if your responsibility.
In other words, if your Lender does not show up on the day of closing with the money for whatever reason, you are still in default on the "Contract to Buy and Sell Real Estate" (not your Lender) and you are at risk of losing your Earnest Money (and specific performance in the unlikely event that box is checked on the "Contract to Buy and Sell Real Estate"). Another way of saying this is: your Lender is not a party to the "Contract to Buy and Sell Real Estate" and so they have no consequences in the "Contract to Buy and Sell Real Estate" if they don't perform.
So, consider "testing" a new Lender carefully.
- Interview 3 Lenders
Talk to 3 Lenders to determine which one you'd like to use.
Ask your Real Estate Broker for recommendations.
Mark complete once you've talked to 3 Lenders of if you've already decided which Lender you plan to use.
- Determine your Lender
Decide which Lender you will use to finance your purchase.
You can ask your Real Estate Broker for recommendations.
Mark this task complete once you've decided on a Lender to use.
- Apply for loan with Lender
Make an application to get qualified for a loan with the Lender you've decided you're going to use.
Some people will opt to get quotes from multiple lenders. If you're going to do this, compare everyone on the same day so the rate is the same.
Also, have the Lender you think is most likely to be the one you'll go with pull your credit and then tell the other Lenders you're comparing what your credit score is. If you decide to go with them, you'll let them pull your credit then.
Your ultimate goal at this point is to get a pre-approval letter for the max amount you qualify for.
If you need a recommendation for a Lender ask your Real Estate Broker.
Mark this task complete once you've applied for a loan and been approved with the Lender you plan to use.
- Understand what documents your Lender will need
- Find out what interest rate and down payment amount you'll likely get
- IF OWNER OCCUPANT: Find out your estimated monthly payments
If you're going to owner occupy the property especially, find what your estimated monthly payment will be for both your max loan that you can qualify for and the price you're comfortable with that you'll likely be buying at.