A Pre-Approval was a sales tool grown out of the need for both realtors and sellers to be assured of a buyers qualifications. A generic Pre-Approval has become… a piece of paper waived in front of both realtor and seller indicative of a buyers qualifications, irrespective of a specific property fixed costs.(taxes,insurance & condo. fees).
What does it really say and who really cares? Realtors typically don’t care if their clients are pre-approved, and that’s fine if their client is a known entity, but what if they’re not? Do you trust your instincts? OK, but what if it turns out to be a complete waste of your time? It’s only going to get worse in this current housing environment.
It’s an absolute that you at least have some written assurance that shows you are qualified to buy this home or that home. All homes are not created equal, all taxes are not the same and all condo association fees are not 200.00 a month. Pre-Approval is free and will only make everyone involved that much more comfortable but gives you a framework to work in.
*Credit scores minimums have been increased to 680 for conventional loans
**Credit scores under 720 may mean higher rates
***Debt ratios in the past were flexible and had allowance and exceptions galore, no more is that the case.
****Property appraisals are subjected to 2nd tier reviews with great regularity now. Underwriters rarely looked at appraisals in the past because that was where the least amount of risk existed. Today it’s all of the above and more.
*****Consider an FHA loans for buyers who have less than 20% to put down and who are buying something that will have a loan amount of less than 410,000.00.
Call today to get Pre-Approved.
I suggest you speak with: Sean Lowery, Senior VP Mortgage Services who has 20 years of experience and is a certified mortgage professional. He can be reached at: 312.786.5844 or cell: 312.802.5844 and he is with LaSalle-Pacor Mortgage/401 S. LaSalle Street, Suite 201, Chicago Il.60605. Please mention that you were referred to him via this blog/website.