How to Get a Good Faith Estimate and Pre-Approved for a Loan - for FREE!
- by Adam Hopkins
There is an old saying that a confused buyer will not buy. No one likes the feeling of falling in love with a product or service and then having the rug yanked out from underneath their feet, or have someone pull the old "Bait and Switch".
Today's lenders are a wealth of valuable information, and it can make your life so much easier when you know upfront what costs will be incurred when buying a home. The great part is that access to this information is not only easy to obtain, but it's actually FREE!
There are 2 things that, as a home buyer, will help you sleep a lot better at night:
1) A Lender Pre-Approval
2) A Good Faith Estimate (GFE)
Did you know that lenders can quickly review your employment history, income and credit and issue you a FREE Pre-Approval letter? And by quickly, I'm talking about in a matter of minutes. Why is this helpful? Well, there are a variety of reason why:
1) You don't waste time looking at homes priced too high (or too low) than what you can afford.
2) In any market, the best deals ALWAYS sell quickly, and a Pre-Approval Letter tells the seller that you are qualified and won't be wasting their time. If 2 offers come in on a hot listing, and yours is accompanied by a Pre-Approval Letter and the other is not...guess what...you have the advantage.
Regarding the Good Faith Estimate, wouldn't you like to know ahead of time what fees you will need to be prepared to cover over the next 30-60 days to close on your new home? Unless you enjoy hearing "Oh, btw I'm going to need a check for $300 tomorrow" or "yeah, that title work is going to be "X" amount of dollars, the day of the closing, then getting a Good Faith Estimate is going to go a long way to bring you the peace of mind you will want.
Here's the deal: Buying a home can be a stressful time. There are lots of moving parts that culminate all at once, and the more you can do to prepare, the more you will enjoy opening that front door for the first time as the new proud owner. And getting Pre-Approved, along with a solid Good Faith Estimate is a great place to start this process. And best of all, its FREE!
If you would like an introduction to some outstanding local lenders, give me a call at (434) 444-7136.
Happy Home Hunting!