The Mortgage Blog

I recently had to calm a client down because they thought they were being singled out when they were asked to show up to an open house with a pre-approval letter.  I am not sure exactly how it was communicated to them but I did assure them that they are not being singled out.  It had been about 10 years since they bought a house and lot's of changes have occurred in our industry since then. So to those of you who are reading this and have heard of the preapproval process let me say this... GET ONE. You owe it to yourself and to your Real Estate Agent.  The process of buying a house has changed today and it won't be changing back anytime soon.  There are too many variables that need to be reviewed before you should have the confidence of putting in an offer.  To name a few, FICO score, maximum qualifying ratios, the interest rate used in qualifying, ever changing mortgage guidelines.  A seasoned mortgage broker must carefully review this information before arming you with a preapproval.  And a seasoned Real Estate Agent needs the preapproval before they drive you all over Town setting up walk throughs.  The listing agent will need your preapproval letter before accepting your offer, a deposit and a handshake just doesn't cut it anymore.

 So if you are interested in buying a home, look for a Mortgage Broker who offers free preapproval services.  The process is quick and painless and once you are done it is usually good for 30 days. 

Happy house hunting!

John Milano