If you plan on financing
You’ll need to talk with a LOCAL lender before looking at houses. Once they review your financial information, they will provide you with a letter that tells the seller you have been pre-approved for a loan. While pre-approval is a good thing, it does NOT guarantee that you will get final approval for your loan. But its a good indication that on the surface you have enough credit to purchase a home.
Use Someone Local
You will want to shop for financing the same way you shop for a home. Some lenders offer more services and better rates than others. We have several lenders we work with on a regular basis. They are sure to include all the costs in your up front Good Faith Estimate so you don’t have surprises at the closing table.
Sometimes when shopping for homes on the internet, you’ll see a monthly payment listed that looks fabulous. However, these payment estimates usually don’t include taxes, insurance, or PMI (private mortgage insurance). A good lender will review your credit history and provide you with a fair accounting of all your costs. Each lender is required by law to provide you with a Good Faith Estimate (GFE) and you can use the GFE to compare loan costs.