Myth #8 Getting a mortgage should be quick and easy

By
Real Estate Agent with Certified Staging Professional (CSP) Elite Instructor

This is a continuation of a series: 10 Common Myths Shared by Homebuyers.* See myth #7 here.

Many buyers resent the lending process and don't understand why they need to provide a pre-approval Get preapproved!and start jumping hoops before they find a house they like.  In troubled mortgage markets, lenders take more precautions before lending money. Lenders must be certain that a borrower is creditworthy which requires quite lengthy application process and documentation verification.  Given the changing guidelines, it's important for a buyer to cross this hurdle first.  In the Charleston market, many of the lenders I'm working with are putting the file into underwriting upon receipt of all documents. This has saved a few borrowers when guidelines changes. Since the file was in underwriting they were grandfathered in so to speak assuming a ratified contract followed soon. Without this step completed, a seller will not consider a contract without a pre-approval.  If the property is a hot buy for you, it probably is for another buyer and you could be losing the opportunity on your dream home due to a delay in getting the necessary documents to your lender and the time they need to review it.  It's important to have a full pre-approval in hand.  When you find the right house, you'll be thankful you have it in hand.   

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Michele Reneau - Military Relocation Specialist with Carolina One Real Estate in Charleston, SC.

Contact Michele Reneau, Realtor®, North Charleston, SC Relocation Expert, CRS, GRI, ABR. Licensed Realtor® in South Carolina at 843-572-0518 to list your property for sale or to purchase real estate in Charleston, Goose Creek, Summerville, North Charleston, Hanahan, Mount Pleasant and the surrounding areas in Charleston County, Berkeley County or Dorchester County, South Carolina. The Charleston Relocation Expert specializes in military relocation, first time homebuyers and creating marketing exposure to sell your home in the Charleston SC Real Estate market.  I can also be contacted by email at mreneau@carolinaone.com. To view all Charleston Metro area Homes for Sale Click Here and then click on Search for Homes.  

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Rainer
47,935
Nicole Weidauer
Keller Williams Greater Seattle - Shoreline, WA

I can't stress this enough to my buyers! I just closed a sale this morning (as we speak actually) for a buyer who's transaction should have closed 2 1/2 weeks ago. Because the buyer was dragging his feet getting approved for the loan we had to enact an extension into the contract and even then, because the lenders are so tough on borrowers these days, they came up with half a dozen more conditions before closing. Thank goodness we were able to get those quickly or we'd be delayed another couple weeks.

If my buyer had been preapproved prior to putting in that offer, we might have been done on time or even before the proposed closing date. There is a saying that comes to mind in regard to this situation, "Don't put off for tomorrow what you could do today."

Thanks for sharing, Nicole Weidauer

The Egerer & Weidauer Team, Keller Williams Realty North Seattle

Dec 01, 2008 11:37 AM #1
Anonymous
Anonymous
Anonymous

Great point! I've been saying that for 8 years now..but, who listens to Mortgage Lenders!  

Dec 01, 2008 02:24 PM #2
Rainmaker
748,257
Gabrielle Kamahele Rhind
KGC Properties LLC, Tucson Property Management & Real Estate - Tucson, AZ
Broker/Owner

Morning Michele -- I linked this post to a Buyer that wants to wait and talk to a lender when he finds the right home!  It helped him - thanks so much -- looking forward to Myth #9! -- Gabrielle

Dec 10, 2008 06:35 AM #3
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Rainmaker
131,337

Michele Reneau

Realtor, GRI ~ Charleston, SC Relocation Experts Team
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