The Importance of a Mortgage Pre-Approval Letter
A mortgage pre-approval letter or proof of funds is needed in order to purchase in today’s real estate market. Here in The Villages, our home values weren’t negatively affected like many other areas of the country. As a result, sellers won’t consider an offer or take their home off the market without a pre-approval letter from a qualified lender or proof of funds. Therefore, many local realtors won’t show houses to a buyer who is not pre-approved. If your realtor didn’t ask about a pre-approval, perhaps they are new to the real estate business. Ultimately, you won’t likely get very far in the home buying process here in The Villages without a pre-approval unless you are paying cash.
Structuring Your Offer to Benefit YOU
If you would prefer not to pay cash for your home purchase, there are a variety of mortgage product to choose from, and just as many ways your mortgage loan can be structured. It is best to strategically plan this out before you make an offer and get a seller involved. Because The Villages is a seller’s market this is particularly important. A seller’s market simply means there are more buyers than sellers. It is a fact that you will get a better deal if you are the only buyer negotiating for a home. It is also much easier to get a seller to agree to something upfront rather than try to change your agreement later to fit your loan strategy. Landmark Mortgage Planners are experts are structuring loans to complement our clients’ overall financial strategy, but this is always easiest when you meet with us first – before you enter a purchase agreement. You can make application online or consult with one of our mortgage professionals without any cost or obligation.
Landmark Mortgage Planners is Locally Owned and Operated
Many people believe that they will get the best deal from their personal bank, or by shopping online. First, Landmark Mortgage Planners is competitively priced and can usually match or beat the rate and terms offered by big banks and online lenders. But more importantly, we can provide a level of service that big banks and internet lenders typically do not. Unlike your bank, Landmark Mortgage Planners and our employees make our income in one way – closing mortgage loans. As a result, our only focus is closing loans. Unfortunately, bank employees often have a variety of other responsibilities having nothing to do with mortgage lending and they are usually salaried employees. As a result, bank employees typically have much less mortgage experience and are often unavailable after 4 or 5 o’clock. Our mortgage professionals know the mortgage industry inside and out, and are paid only when they close loans. They answer their phones, have time for your questions, and are often available after normal business hours. Because we are local, our reputation in The Villages means everything to us. When we tell you something we have to follow through. We can’t hide when things don’t go as planned. Finally, because we live and work here in The Villages, we have established relationships with the real estate professionals you need to get the job done right – like title companies, surveyors, engineers, inspectors, insurance agents, escrow and closing agents. Doesn’t it make more sense to trust such a substantial investment to an experienced professional – not someone you found online and will never meet? Put Landmark Mortgage Planners to work for you.
Other benefits of a pre-approval…
A mortgage pre-approval also gives you the buyer some valuable information. Our Landmark Mortgage Planners will help you determine the following at your mortgage pre-approval appointment:
- Evaluate Credit. We will run a mortgage credit report, which is different from credit reports run for other purposes. We will review your credit for accuracy, identifying areas where you can improve your score. Even if you have spotless credit there are things you can do to keep your score at the highest it can be.
- Discuss Down Payment. In your mortgage pre-approval, we will talk about the money you have available for a down payment and closing costs, and acceptable sources for funds including gifts, bonuses, sale of real estate or personal property, and other sources. We will arm you with the information needed to properly document these sources to avoid problems in underwriting.
- Determine the Best Program. Based on your down payment and credit, we will discuss the different programs that may be available to you. We will let you know about any restrictions and documentation that these programs impose, so that we can discover any difficulties upfront and get a head start gathering items for the mortgage.
- Discuss Interest Rates. We will discuss interest rates, how they change, the difference between a fixed rate or an ARM, when you can lock your rate, how points affect your rate, and more at your mortgage pre-approval appointment.
- Determine the Payment and Loan Amount. We use lender allowed debt ratios to determine the payment amount for which you can be approved, considering your current gross income and all of your current debts. Then we also consider the payment that is comfortable for your budget. Together, we determine the mortgage pre-approval loan amount that you can be approved for and will be comfortable in your budget.
- Provide a List of Items Needed. You will leave your mortgage pre-approval appointment with a complete list of items we will need to submit your loan to the underwriter. Gathering these in advance can significantly reduce the time required to close your loan once you find a home.
- Mortgage Pre-Approval Letter. We will provide you with a mortgage pre-approval letter that you can use to prove to realtors, sellers and banks that you are qualified to buy.
Your mortgage pre-approval will allow you to shop for that dream home with confidence. When you find the right home, you won’t have any concern regarding whether you can afford it, or how long it will take, what kind of mortgage you should get, or if your loan will be approved. At Landmark Mortgage Planners we will answer all of these questions at your mortgage pre-approval appointment.
You can either set a mortgage pre-approval appointment or you can make application on line and one of our mortgage planners will contact you to discuss your application and email you the mortgage pre-approval letter.
“ I have positioned myself at Landmark Mortgage Planners because the team here shares the same vision as I do – to deliver the very best customer service and being leaders in our industry by building a strong reputation of providing prompt and reliable service. I believe we can do this at Landmark because we have a strong team and we also enjoy the flexibility of not being limited to just one set of mortgage origination guidelines.”
Lisa Marie Brannon, Certified Mortgage Planner