Tag Archives: loan preapproval

Interest Rates Rise, Time to Update Your Loan Preapproval

There will be plenty of buyers attending open houses this weekend, despite a predicted lack of new inventory as we head into a holiday week. Some of you may have been recently preapproved for a loan. Others may have completed the process a month or two ago.

The big news this past week is that interest rates have increased significantly. If you’re about to write an offer, I recommend you contact your lender to revisit what your monthly payments will look like in conjunction with the latest interest rates. You may have been quoted 3.5% for a 30-year fixed loan a while back, but now you may be looking at upwards of 5% in today’s market.Continue Reading

The Facts Behind Credit Reports & Loans

This time of year often sees prospective home buyers start to lay some groundwork for a home purchase in the following year. And based on many such individuals contacting me about potential house hunts this month, I’m guessing it wouldn’t hurt to put up a few posts about the many aspects behind getting your loan preapproval.

I recently ran a post about the reasons lenders need to pull credit reports when completing loan preapprovals. In keeping with that reality, I thought I’d share some tips from my colleagues at Guarantee Mortgage about how credit report details factor in to your loan preapproval. Because the more buyers understand about the process, the more confident they can be about making decisions along the way.Continue Reading

Don’t Push Back on Pulling Credit

If you’re interested in figuring out what you can afford in the San Francisco real estate market, the first step is getting fully preapproved for a loan. And part of that process involves a lender pulling your credit so it can verify the type of loan for which you’ll qualify.

My colleagues at Guarantee Mortgage report that some buyers are resistant to having their credit pulled. Indeed, I’ve had clients question why such activity is necessary. The upshot is that pulling credit has more of a purpose than just determining the buyer’s credit score.

Lenders in the current market—especially jumbo lenders—are equally as interested in the “depth” of borrowers, says Guarantee Mortgage. For example, they want to see that a buyer has used credit in the past 24 months, and believe that if the buyer doesn’t have debt, the credit score may be compromised. As a result, the lender may not be getting an accurate read on the borrower’s ability to pay.Continue Reading

Get Preapproved for a Loan Before You Start House Hunting

The holiday weekend is behind us, and that means many buyers will be either entering the home buying market, or may already be out there looking for their next home.

If there’s one key piece of advice I can give to all of you, it’s that you should get fully preapproved for a loan before you start seriously searching for a property. Of course, it’s a good idea to get your feet wet and go to some open houses to get a sense for pricing and value. But before you start making appointments to see homes, the very first step should be that phone call to the mortgage broker or lender. Because if you don’t have a clear understanding of the loan amount for which you can qualify, you could end up wasting a lot of time.Continue Reading

Get in touch:

Eileen Bermingham

Zephyr Real Estate



BRE# 01352627

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