You need a rock-solid preapproval letter.
PROCESSING: A SOLID LOAN ESTIMATE
As a real estate agent, you will sometimes be asked by buyers for advice on the mortgage process. You should tell prospective borrowers that once they have their sights set on a property and have their pre-approval letter in hand, their next step should be to obtain a solid loan estimate for the property. The loan estimate lists loan terms and settlement charges to be paid if the borrower decides to go forward with working with any particular lender. It is not a pre-approval nor is it a pre- qualification. It is more of a “This is what we will likely offer you when you start the loan process and are approved for the loan.” The loan estimate is basically an upfront quote of all the different costs, fees, interest rates, etc., that the buyer can expect to pay if they proceed with a loan from that lender. It explains which charges can change before settlement and which charges must remain the same. It usually also contains a chart that compares multiple mortgage loans and settlement costs, making it easier for the borrower to shop for the best loan. In the loan estimate phase, the various fees that are associated with getting a loan to buy a property are compiled. It is going to have estimated appraisal fees, inspection fees, and estimated closing fees. For example, if the buyer pays the title insurance, (which they do in some areas), then an estimate for the title insurance cost is prepared and factored that into the loan estimate. The loan estimate is designed to give the borrower important information while they shop for a loan. Borrowers are encouraged to shop around to multiple lenders to determine
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