Buy Your Dream Home Series: The Loan Process Explained

Atria Real Estate January 25, 2023

Real Estate

Buy Your Dream Home Series: The Loan Process Explained

Welcome to the second instalment of our Buy Your Dream Home Series. Today we'll discuss the Loan Process and the importance of pre-approval. Hold on to your hats, this is a good one!

The Importance of Pre-Approval

 

In our competitive market, a pre-approval letter is commonly required to be submitted alongside your offer package. 
This is because a pre-approval letter is your proof of strength and ability to perform as a buyer. Unlike a “pre-qualification” letter which is simply an opinion letter from the bank, a pre-approval letter means you are officially qualified for the desired loan amount and purchase price. The pre-approval process is also helpful because it allows you to be fully financially aware prior to making an offer. 


Starting the pre-approval process early has many benefits:

  • Ability to review and shop around for the best financing options
  • Determining your purchasing power, ie. how much you can afford or want to spend
  • Understanding what your monthly payments will be, aka PITI, which stands for principal, interest, taxes and insurance.

We are happy to recommend our preferred lenders to you. These are vendors we have worked with before and we can rely on for excellent customer service, quick turnaround times, and optimal negotiation power. Having a firm financial footing is critical in a hot market.

The Loan Process

 

Below, we describe the loan process step by step:

 

 

Next up we'll discuss disclosures. If you have any more questions about the loan process, please feel free to contact us for a free consultation. 


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