When buyers are ready to buy a home, they must be pre-approved for a loan, if they are planning to use a loan, and not cash to buy. There is a form in Arizona called a Loan Status Report which must be signed off by the lender who is pre-approving them for a loan.
A mistake that buyers can make is going to several banks, shopping for a loan, checking rates, etc. Each time they talk to a different bank, the bank runs their credit. And each time their credit is run there is a slight “ding” on their credit score. If one has their credit checked enough times soon there are enough “dings” the buyer has a lower credit score than when they began shopping for a loan — sometimes to the point they will not get a loan at all!
We suggest that buyers use a loan broker instead of going direct to a lender, such as a specific bank.
The advantage of using a “Broker” instead of a “Banker” is that by using a broker, the buyer has an advantage of a vast network of lenders across the U.S. The loan broker has resources and can search through their databases of the many different loan programs so they can present to the buyer the options best suited for their individual needs. The buyer gets the advantage of “shopping about” but their credit is only run one time — not many times during the “shopping process”.
The key benefits are:
If you are thinking of buying, again, it is critical to become pre-approved for a loan before beginning to look for a home. Then you are sure you are searching in the correct price range. Also once you are ready to make an offer, it is mandatory in Arizona that an offer is accompanied with the form called a Loan Status Report. This document is signed off by a lender saying that a buyer is qualified to buy the home they are making the offer on.
If you need a referral to loan brokers who are qualified to deal with Arizona homes, then give us a call, or send an e-mail — we can offer some referrals to you.
( 480-201-3001 - homes@benjamin.com )
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