When you want to purchase houses in Los Angeles, one of your first steps should be meeting with a local lender and getting pre-approved for a loan.
This step is important for 3 reasons:
- You’ll know what you can spend. Looking at homes you can’t purchase not only wastes your time, it’s depressing. And, as many home shoppers have learned, once you switch to homes you can afford, none of them will please you.
- You’ll know if you need to restrict your search to houses in Los Angeles that meet certain requirements. VA and FHA both have guidelines regarding the homes that will qualify for their financing.
- When you have a pre-approval letter in hand, it’s more likely that your offer will be accepted, or at least considered over offers without such a letter.
In fact, if you’re shopping for bank-owned homes or short sales houses in Los Angeles, it’s likely than an offer without a pre-approval letter will be rejected as a matter of routine.
Don’t mistake a Mortgage Loan Pre-Qualification for a Pre-Approval.
Go Get Pre-Approved For houses in Los Angeles
There is a huge difference between the two. A pre-qualification is done with no verification. As a result, it doesn’t mean much.
You simply talk with the mortgage lender and tell him or her about your situation. You state your income and your expenses, discuss your employment history, and answer a few questions about your credit. Then they tell you if you appear to be qualified.
When you become pre-approved it means the lender has verified your income, assets, down payment availability, and employment. He or she has also checked your credit. So unless you do something to change the picture, you will be able to get a home loan for the amount the lender quotes.
A pre-qualification doesn’t mean a thing to home sellers or banks, so take the extra step and become pre-approved.
If you need to find a good lender, get in touch. I’ll be happy to provide you with a list of lenders who service houses in Los Angeles and who have also served my clients well.