Be the Winning Bidder in This Competitive Market !
By Sherry Brady , Branch Manager , Apex Home Loans , Inc .
If you ’ ve been looking for a home for even a few days , you ’ ve probably already realized that , like most of the rest of the country , we are in a very hot housing market here in central Virginia ! Homes are coming on the market and going under contract within hours . What can you do to improve your chances of getting the contract on the home you love ! Preparedness is the key !
To make your offer stand out , it should definitely be accompanied by a Pre-Approval ( not Pre- Qualification ) letter . What ’ s the difference , you ask ? A lot . A pre-qualification is an unverified process where the lender just asks you some basic information in order to estimate how much house you can afford . They probably have not pulled your credit , but instead are basing their rate estimate on what you tell them about your credit , and they almost certainly have not reviewed any W-2 ’ s , paystubs or bank statements . Honestly , when it comes to vouching for your ability to get a loan , a pre-qualification is not worth much . If you are seriously looking for a home and want to have any chance of winning the home you want , then you absolutely need to get Pre-Approved .
Getting pre-approved takes a little more effort than pre-qualified , but it ’ s not difficult and it is the only way you will be able to compete in this market . So , what ’ s involved in getting pre-approved ? You should plan to gather up the following : most recent 30 days paystubs , last two years W-2 ’ s , most recent bank statement ( all pages ) on the account that will be used for your earnest money deposit and down payment , most recent statement on any other asset accounts if you ’ ll be using an income-based loan program such as USDA or VHDA , and a photo ID . If you are selfemployed or own more than 25 % of any company , you should also plan to provide your personal and business tax returns . Once you are initially preapproved , it ’ s a good idea to send any updated paystubs and bank statements as you receive them so that once you find your dream home , so that all of your verification documents will be up to date .
Once we have all those needed documents , and your permission to pull your credit report , we will be able to complete your pre-approval and provide you and your Realtor with a Pre-Approval letter . Typically , we will just put “ TBD ” on the letter for the address and purchase price but can easily update that once you are in the offer process . At least with the letter in hand , your Realtor and the seller will know you have talked with a lender and have your financing options in order . If you are on a tight budget , we can also work closely with your Realtor to update you and them on closing costs and evaluate each home you are looking at to be sure it is within your budget .
Having a Pre-Approval letter from a local trusted lender can make a difference in your negotiations . The Apex Home Loans office in Forest has a full team on staff including five licensed , experienced Loan Originators who are ready to partner with you and help you prepare for the largest purchase of your life . Ready to get pre-approved and let us walk with you on your homebuying journey ? Visit us online at
www . LynchburgLender . com , pick one of our experienced lenders to work with , or call the office at 434-237-1027 and we ’ ll connect you to one , and let us help you GET MOVING !
Sherry Brady , Branch Manager / Sr Mortgage Banker , NMLS # 217258 ; Apex Home Loans Inc ., NMLS # 2884 ; nmlsconsumeraccess . org , Equal Housing Opportunity .