Owning Your Dream Home Step 1: Contacting a Lender

Before you begin the search for the home of your dreams, it is important to contact a lender to get pre-approved for a loan.  Nice properties that are priced aggressively often sell rapidly.  Foreclosed properties loaded with upgrades and located in desirable neighborhoods often have multiple offers on them in a matter of days after coming on the market.  You’ll want to be prepared to submit an offer quickly when you find the right home.  Having to wait to get pre-approved before you can complete your offer may cost you valuable time, and the buyer who is prepared will have an edge.

Our goal is to educate our clients and give you every advantage possible.  The first step is to be prepared with a “Loan Status Report”.  The Arizona Association of REALTORS® Purchase Contract requires a Loan Status Report (commonly referred to as an L.S.R.) accompany an offer when the buyer is financing the home.  A lender can provide you with this form, which outlines the type of loan you are pre-approved for and the amount.

The pre-approval process is important because it will provide you with not only the amount of the home you can shop for, but also how much cash you will need at closing for the down payment and closing costs.  There are a variety of loans available, with varying down payments.  A mortgage specialist can assess your situation and tell you which loan best meets your needs.

Cash buyers are not required to submit a Loan Status Report.  In this case, you will be required to submit “Proof of Funds” along with your offer.  A recent statement from your financial institution demonstrating you have the funds to complete the transaction is usually sufficient.

If you would like a referral for a lender, please send us an email.  We’d be happy to provide you with contact information for local lenders with whom we’ve had pleasant transactions.

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