Mistakes Sacramento Real Estate Home Buyers Make When Obtaining Loan Approval

Mistakes Sacramento Real Estate
Home Buyers Make When Obtaining
Loan Approval

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Mistakes Sacramento Real Estate Home Buyers
Make When Obtaining Loan Approval
Sacramento agents have required that every purchase
offer must be accompanied by a loan approval letter
before they will submit the offer to possible home sellers.

This is a practice by realtors not just in the region but
almost every agent all around the country. They require a
loan approval letter with offers.


According to a realtor, you can make your loan approval
letter mean more than you have applied for a loan, and
the letter can give the seller solid reasons to accept your
offer.

Or, your loan approval letter can give the seller reasons to
reject your offer.


There are common Loan Approval Mistakes and these are
the following;

Submit a Loan Approval Letter From an Out of Area
Lender -- I have heard from an agent that they feel
comfortable if they know the lender who has prepared the
loan approval letter.


Meanwhile, they get nervous if the lender isn't local
because they don't know if the lender will perform.

Let's face it, there are a lot of fly-by-night mortgage
lenders in business, and some make outrageous promises
to borrowers that they never intend to keep.


They figure by the time the borrower is ready to close, the
borrower will have no option but to meet their new terms
and conditions, but many borrowers instead walk away
from closing.

Realtors said that it puts a home buyer at an extreme
disadvantage to submit a non-local lender approval letter.


If home buyers encounter difficulties with the loan, it's
not like they can lean across a desk and grab their
mortgage broker's throat.

Instead, they must glare at their monitor and furiously
pound the keyboard or continually push redial on their
cellphone.


A major problem is choosing a knowledgeable appraiser.

Out-of-area lenders generally have no personal experience
with an appraiser they pluck out of the phone book and
may hire an incompetent appraiser who can mess up the
appraisal and blow the deal.


Submit a Pre-Qualification Letter Instead of a
Preapproval Letter -- It is said that prequalification
letters vary in verbiage, but most of them say the
mortgage broker or loan officer has received a loan
application from the borrower.

Period. They may or may not have reviewed a credit
report.


The letters also state there is no guarantee that the lender
will make the loan.

A preapproval letter, on the other hand, speaks volumes.

Preapproval letters say the borrower's file has been
submitted to underwriting and approved.


It means the borrower's credit has been reviewed and
found to be acceptable, the borrower's employment has
been verified and the borrower's assets have been
substantiated.

Submitting a preapproval letter means the borrower is
fully qualified to purchase the home, subject only to an
appraisal and title work.


Submit a Loan Approval Letter for More Than Your
Offer Price -- Let's just wave a flag in the seller's face that
says, "Look at me.

I can pay more than my offer price." That's how sellers
interpret a loan approval letter in excess of the purchase
offer.


They don't think it's nice that the borrower is qualified for
a higher loan amount because they immediately want to
put some of that money into their own pocket.

The seller needs to know that a home buyer can afford the
mortgage that the buyer is proposing to obtain in the
purchase offer, and not a penny more.


It is best for a home buyer to seek help from a real estate
agent to avoid mistakes in common loan approval.

Home buyer may ask guidance from real estate agents and
apply their advices to be able to avoid encountering real
estate problems in the long run.


Looking for the most trusted and well known professional in
Sacramento Real Estate? Look no further! David Yaffee can
help you in virtually ALL your Real Estate in Sacramento
needs.

If you have more concern in Real Estate Sacramento just
visit my site and call me.


Mistakes Sacramento Real Estate Home
Buyers Make When Obtaining Loan Approval
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Mistakes Sacramento Real Estate Home Buyers Make When Obtaining Loan Approval

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Mistakes Sacramento Real Estate Home Buyers Make When Obtaining Loan Approval