When do I need to start talking to a lender? And, what's the loan process?

Chris Callan answers:

1. You need to start talking to the lender as soon as possible so that you can get pre-approved.

2. Most lenders are going to require at least 2 years of tax returns, but sometimes 3 years. They are going to have you complete the loan application, provide account verifications (bank statements), and verification of employment. The best way to do this is to get them everything they ask for upfront, because every time the lender must come back and ask for a piece of information the underwriter stops working on that file and goes to another loan request. This means that once you get them that one piece the loan is now back in line to get worked on again. This is why it’s very important to get the lender as much information upfront as possible. Once pre-approved you will receive a pre-approval letter that we can submit with your offer which will make your offer stronger because you are showing the seller that you are talking to a lender and have given the lender enough information to make a decision. Now, once your offer is accepted then we will give the lender a copy of the contract and they will order the appraisal once the option period ends. Once they receive the appraisal the lender will then go to final underwriting and get the loan approved. Once approved we can close. It's sounds like a long process; however, the loan process is fairly simple.

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Buyer looking for a home. I’ve had a better job offer from the competitor of the company I’m working for & I’m ready to make the career move on Monday!

Peggy Bowie answers:

Whenever your house sells, your lender will need strong credit reports from you in order to finance the purchase of your next house. Your job history is part of that credit validation. I encourage you to avoid making a job change and avoid any major purchases that will affect your credit report until your house sells and you’ve completed the purchase of your next house. Your lender will be better prepared to serve your needs for this major life purchase if you have a consistent credit history.

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Why do I need a home inspection if I am buying a new home?

Diane Gros Louis answers:

Because even though it is a new home, there could be potential issues that you are not aware of, for example: wiring problems, mortar not up to code which could cause a future leak, air compressor not hooked up correctly, flashing not in areas it should be, which could cause future leaks. Insulation not correctly installed, vents not installed correctly, the list is endless!

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