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Getting Pre-approved for your Loan

Knowing your purchasing power is one of the most important factors in buying. Know exactly how much you can spend BEFORE you go shopping for your home or land. Waiting until you have an accepted offer before you meet with a lender is a horrible idea and may keep you from getting the property you want. Before we begin actively looking at individual houses, be pre-approved for your mortgage.


You probably have an idea of the loan payment and mortgage you can afford. But will the bank agree with you? They have the money, so you need to know how much a financial institution will be willing to lend you.


A pre-approval means you have already submitted a loan application and most of the necessary paperwork to obtain a loan. Your credit has been checked, and you have in hand a lender's written commitment to put together a loan for you, subject to the particular property you want to buy passing the lender's appraisal.


In the pre-approval process, you will find out:
- What properties you can afford to buy
- Amount of cash you'll need for the down payment
- How much the bank feels you can afford for a monthly payment


Getting pre-approved for your loan is a powerful buying strategy.
Do you want to get the best house you can for the least amount of money? Then make sure you are in the strongest negotiating position possible. Price is only one bargaining chip in the negotiations. Other considerations, such as the strength of the buyer or the length of escrow, may be critical to a seller.

Being pre-approved gives you a distinct advantage when making an offer on a property. You can make a more aggressive (lower) offer, and a seller is more likely to accept an offer, when the seller and their agent know that you won't have problems obtaining financing.


It also makes the process much easier on you. Once you find your home or land, you'll want to concentrate on planning your move, not worrying about whether or not your loan will be approved.


Pre-approved vs. pre-qualified
Getting pre-approved for a loan is very different from getting pre-qualified. Pre-approval is a lender's commitment to lend; pre-qualifying is more of an opinion based on unverified information, with no commitment involved.

Sellers are aware that a "pre qualified" certificate from a lender is WORTHLESS ... none of the information has been verified and there is risk that unknown problems will surface: recorded judgments, child support payments due, glitches on the credit report, down payment funds not in the buyer's bank account long enough, etc.


Contact me for a list of reputable lenders in Pagosa Springs.
Even if you’re not in Pagosa the pre-approval process can be done by some combination of phone / fax/ mail before you get here.


With your funds arranged for, we can have a wonderful time shopping for your piece of Pagosa!