Getting A Loan on San Francisco Real Estate

For Buyers

The San Francisco Real Estate credit market, like everywhere in the contry, is ever-changing.  Checking current loan rates and terms is easily achieved via the Internet and, despite current economic woes, it seems like getting a mortgage is a fairly straightforward process.  For some this is true, and for others it is not.  However, the key is to take steps to secure your financing at the onset of your home search.

Assuming you qualify for a mortgage on San Francisco Real Estate and you establish this early in the process, you gain three very important things: a good sense of how much a lender will grant you; an understanding of how much house you can afford or want to spend on a monthly basis; and the ability to negotiate your purchase from a strong position. This last point cannot be emphasized enough.

All sellers want the highest level of confidence that once they agree to an offer, the deal on their San Francisco Real Estate will close.  For them, to begin an escrow period means their property is now in contract, but not sold.  Given the number of tasks that must be completed prior to the close of escrow (see Successful Property Acquisition), by submitting your offer with a loan pre-approval, you've made your offer more attractive than the next and thereby gain leverage.  It demonstrates you're a serious buyer and have the means to pay for your purchase.

To be clear, a pre-approval letter from a lender is different than a pre-qualification letter.  A pre-approval letter indicates you've spoken to or met with a lender or mortgage broker who has verified your income, down payment assets, and debt enough to issue a statement indicating that should matters not change between the date it is written and the date of actually submitting a loan application, you will be approved for a loan.

A pre-qualification letter simply says you've spoke to a lender or mortgage broker, told them your income, home much money you have for a down payment, and how much you owe.  However, the person with whom you've spoken hasn't verified what you've told him.  As honest as you are, the pre-qualification document they provide carries little, if any, weight when you proceed to make an offer.

I have several San Francisco Real Estate mortgage brokers and bank representative to whom I refer clients.  (See my San Francisco Real Estate Resident Resources page for a list.)  As with all of my referrals to mortgage representatives and contractors, I make no personal gain.  Instead, I want my clients to use someone I know will deliver exceptional service consistently.  Having said that, I will gladly work with whomever you choose, provided you are confident in their abilities.  (It is best if they are familiar with the San Francisco Real Estate market.)  Keep in mind, I am very clear when vendors of any sort do not perform or, in my opinion, jeopardize what I see as your best interests.  Everyone on my list understands my perspective and how I do business.

A Buyer's Finances When You Are Selling Your Property

Most people selling a piece of San Francisco Real Estate don't give any thought to how a prospective buyer is going to finance their purchase.  If you need to cash-out of your property to pay off your mortgage or, possibly, to make another home purchase, your best interests are served when a buyer presents solid financing with their purchase offer.  However, if you have high equity or do not need all cash immediately, offering financing terms to well-qualified buyers opens up possibilities for both sides of the transaction.

Seller financing is certainly not an option for everyone selling their San Francisco Real Estate, but for some, this is an opportunity to generate ongoing income.  However, if you can, the well-qualified buyer may find better terms with you over a traditional lending institution.

Your goal is to sell your San Francisco Real Estate.  If you have the means to carry a note, it is worth considering.