How Early Should You Make Loan Application?


How Early Should You Make Loan Application?
By Scott Rogers • September 21, 2020
Here are the three sequences I see buyers follow most frequently.... As Late As Possible Guess at what you can buy using online mortgage calculators. Start viewing houses. Make an offer. Ratify a contract to purchase a home. Start talking to several lenders. Select a lender. Become pre-qualified. Make loan application. Provide income and tax documents (etc.) to lender. Obtain loan approval. Incredibly Proactive Start talking to several lenders. Select a lender. Become pre-qualified. Make loan application. Provide income and tax documents (etc.) to lender. Obtain loan pre-approval. Start viewing houses. Make an offer. Ratify a contract to purchase a home. A Reasonable Middle Ground Start talking to several lenders. Select a lender. Become pre-qualified. Start viewing houses. Make an offer. Ratify a contract to purchase a home. Make loan application. Provide income and tax documents (etc.) to lender. Obtain loan approval. I try to encourage all of my clients to at least be in the "reasonable middle ground" sequence as outlined above. This gives them a firm idea of what they can afford and how a home price will compare to a loan payment. This also allows them to make a stronger offer, already having a pre-qualification letter in hand. I strongly discourage my clients from following the "as late as possible" sequence as outlined above. This doesn't help them make the best decisions about which houses to pursue, how far to negotiate, etc. This also doesn't allow us to make as strong of an offer on a house. Occasionally, one of my clients will fall into the "incredible proactive" sequence as outlined above, and wow, this makes the financing process a joy to work through! These buyers have already done so much of their work with the lender before even thinking about which house to buy -- which then allows them to focus on buying, negotiating, inspecting, etc., rather than be bogged down in the process of securing their mortgage. Let me know if you have questions about how I have described these sequences -- and let me know if you would like a few recommendations for lenders in the Harrisonburg area. Receive Updates by Email Recent Articles: There Are Plenty Of Types Of Houses That Exist That Just Are Not Available To Purchase Home Sales By Price Range In The City Of Harrisonburg Are You Compromising On Aspects Of Your Next Home That You Can Or Cannot Change Later? How Much Slower Are The Winter Months In Our Local Housing Market? Rockingham County and New Home Sales Drive Surge in Area Housing Market Find The Balance Between Optimistic And Realistic Home Pricing Room Size Is Difficult To Understand Solely From Real Estate Photos How Much Would You Value Not Having To Prepare Your Home For Showings? One Out Of Four Homes Is Taking Longer Than A Month To Sell Consider The Cost Of Your Planned Renovations When Planning Your Offer
Have any questions? Contact Scott Rogers at 540-578-0102 or scott@funkhousergroup.com
Based on information from the Harrisonburg-Rockingham Association of REALTORS® or its MLS, for the period Jan 1, 2000 through Nov 21, 2024 (unless otherwise noted).
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