I’m sure you’ve gotten them in the mail, those advertisements and marketing ploys that say you may already be a winner or you may already be qualified yada yada. How do they know if you’re a winner or if you’re qualified? Well, they don’t.
I’ve seen people make offers on homes with the only qualification they have being a generic letter they got in the mail saying they may be qualified for a home loan. They haven’t actually done any work or turned in any documents proving they can afford the home. Unfortunately, a lot of home buyers don’t realize this is just a marketing ploy to get you to call. Even if there are mortgage calculators on their website and you fill out all the right numbers, no lender or underwriter has actually reviewed your income, assets, and liabilities.
Most homebuyers don’t realize that the preapproval process is critical to the home buying process. They really go together and you can’t just be qualified on your own with a mortgage calculator or even through an advertisement sent by a bank or credit union. Credit unions don’t actually connect you with a lender but keep all of the information in a call center until you are under contract so those “may be qualified” are really just that, you may be qualified, not you are qualified.
If you get something like this in the mail don’t naturally assume they know anything about your income, debts, liabilities, or assets. They are just trying to get you to call. If there isn’t a lender with a direct phone number on the bottom of your information that can verify the preapproval process, these letters are worthless.
Credit unions and several banks are great when it comes to credit cards, checking and savings accounts, and car loans but are unreliable and can be extremely expensive when it comes to home loans, HELOCs refinances, and mortgages. You may be getting a lot of these letters in the mail but it’s just a ploy to get you in the door.
Going through a reputable and experience mortgage or loan officer is one of the best ways to get a great deal on a home loan. Mortgage officers have access to hundreds of banks, programs, and loans out there so we can really search the gamut of what’s available to you. Banks and credit unions have one system and one loan that they use and their loan officers are typically very expensive which increases your closing costs. To get the very best loan and the best rate with terms that work for you and a program that meets your budget, it’s best to simply contact a direct lender or mortgage officer.