The Lending Process
Before we can start looking at properties, we need a lender to verify your purchase price or, if you are paying cash, you will need to provide proof of funds. This is required by Colorado Real Estate Commission and my agreement with all listing agents is to show their properties only to individuals that can qualify to purchase it.
If you need a loan to purchase a home, the first step is for you to provide preliminary information to a lender licensed in the state of Colorado. I personally feel it is also important that the lender be local. Having a local lender makes it easier to correct issues at the closing table. Contact me if you would like a list of recommended lenders located in North Colorado Springs.
It is also important that you use someone that was referred to you, either from a friend or family member that had a good "recent" experience. I say recent because the lending laws have changed quite a bit recently.
When you complete an application with a lender, your information is confidential and unless you sign a release form, the lender cannot share your credit information or qualifying conditions other than to give me the upper price limit and maybe conditions for the loan to be included in any offer, such as the dollar amount you may need the seller to pay to qualify for a specific loan program.
The lender will provide us with a pre-qual letter telling us your upper limit for a loan. This letter will be included with any offer you make on a home to prove you can purchase the home.
If you are paying cash, we will need to provide a copy of "proof of funds," which can be bank or investment statements with your name but the account numbers redacted.
Once we have a thumbs up from a lender or proof of funds, and a signed buyer agency agreement (discussed in the previous email) we can start scheduling showings.