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Get pre-approved.
Remember that pre-approval means you have been qualified for the loan.
All that's missing is information about the property. When you're
pre-approved, you'll receive a letter of approval. There are conditions
in the letter of approval, including that the home you buy will appraise
for the amount you paid.
The pre-approval letter
is your strongest position as a buyer in a competitive market. One
could strongly suggest you be pre-approved before making an offer
on a home, especially when you're competing with other buyers for homes.
You may be able to negotiate much more effectively for a buyer when the
seller knows that buyer can get a loan-for certain-on his home. When two
buyers are competing for the same home, you can bet the seller will
choose the lower offer from a pre-approved buyer rather than the higher
offer from a buyer who hasn't been pre-approved. If your bank's
pre-approval shows your top loan amount, white it out before your
buyer's agent shows it to the seller. You don't want the seller to know
you can pay more for the house than you may want to pay.
The experts on financing.
Where should you get the best information about financing? Go to a
loan officer associated with a bank, savings and loan, or mortgage
company in your area. An agent should give you three recommendations. If
you're working with a good agent, the agent will know who the
responsible, competent loan officers and companies are in the area. You
can ask your friends who have recently bought about their programs and
loan officers. This is the kind of service that's very reliant on the
integrity and knowledge of the particular loan officer and company he
represents.
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