Whether you have bought numerous homes or you are a first time homebuyer, it is a good idea to freshen up on the process. Since 2008, the process of getting a loan has changed drastically, which has changed the home purchasing process.
One of the first steps in the home purchase is speaking with a lender. In the Denver market, it is imperative to have a Lender Letter along with your offer. This means you will have to provide a Lender with proof of salary and other supporting documentation up front. Lenders will write one of two letters:
Pre-qualification letter. This is an estimate of your purchase power based on what you told the lender.
Pre-approval letter. This is a more formal process as you have filled out the application. The lender as pulled credit, salary and other financial pieces of information.
In cases of a multiple offer situation, a pre-approval is the best type of letter to receive from a Lender. It means the lender has more of an idea of your financial situation and therefore you look like a strong buyer.
Have you talked to a lender to see what you are approved for?
In addition to writing for Daigle’s Digs, Elizabeth works full-time as a Real Estate Agent with Keller Williams Realty Downtown, LLC. Elizabeth’s expertise is in buying and selling a home, first time home buyers, short sales, and investment properties. Contact Elizabeth for any real estate needs. Cell 303-819.73.71. Work 720-314-8352.
