"During the height of the real estate boom, getting a mortgage was as easy as picking out a new coffee table for the living room." writes Lisa Scherzer for Smart Money.   "Now, home buyers have to jump through rings of fire before they can sign on the dotted line."

Getting pre-approved financing is essential in Denver right now.  Pre-approved financing can put your offer at the top of the list.  "Always send a COMPLETE offer," says REALTOR Mike Tutas of Florida, including proof of financing.  "Without (pre-approval), it's a non-offer.  I won't' even present it to my seller."

Scherzer offers these tips for getting a pre-approved mortgage:

1.      Shop around:  To find the best mortgage package for you, talk to a few lenders and see what they have to offer.  Do this early, before you shop for a house.

2.      Prepare Ahead:  Get all your papers together.  You will most likely need:

• W2 statements (or 1099 income statements) for the last two years
• Federal tax returns for the last two years
• Bank statements for the last few months
• Recent pay stubs and proof of other income
• Proof of investment income

3.      Pre-Approval from a Lender does not mean you are stuck with them.  "Preapproval doesn't bind you to a particular lender;" says Scherzer,  "it's just a promise -- albeit, a conditional one -- that the lender is willing to make the loan. The buyer isn t obligated to borrow from that lender."

4.      Watch Your Credit Score:  Make sure your credit is in good shape before applying for any loans. Don't apply for a bunch of loans when trying to get a mortgage.

5.      Make sure your lender is reputable.  Sellers are looking more closely at who the lender is, in order to avoid a situation where the lender might not be able to deliver on the loan.  Make sure you are working with a financially sound and reputable lender.

6.      Don't let the Financing Offer Expire:  Typically a pre-approval letter is only good for 90 days, so once you obtain financing, it's time to start shopping!

"With a letter in hand, buyers know exactly how much they can borrow and therefore how much house they can afford. A preapproval letter shows the seller and the seller s agent that the buyer is capable of buying their house."  says Tara-Nicholle Nelson, a real estate broker in Oakland, Calif., "For most sellers, the issue is not whether they can get an offer, but whether they can close the deal."

Read the full story at Money Talks.

Also read about  How to Make Sure you are Ready to Buy a Home.

Posted in Technology And You, Buyer Resources, Headlines

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