Hillcrest Builders & Construction, Inc.TM

Blog


What does Pre-Approved* mean???

Categories: Blog, Tips and Tricks | Posted: June 21, 2017

Lots of people call me either excited to tell me that they have been ‘pre-approved’, or asking if they need to be.  To be direct, we prefer that you come to us first, BEFORE going to a bank.  Here’s a little insight to why we think this is better for you.

  1.  We know many, many banks. Therefore, by considering your situation we can help set you up with the bank that is right for you. If you go to a bank and get pre-approved; it’s from only that one bank and therefor may not reflect the best financing. Also, most loan officers may be very good at mortgage financing, but not so much with construction loans. Pre-approval for a mortgage does not necessarily speak to the construction loan.
  2. 10% down payment for the construction loan doesn’t have to be the case.   We get so frustrated with that misconception, because it may eliminate new construction as an option in many people’s minds. Just because some banks require this, doesn’t mean it’s the only option.  We have several options for 0%, 3% or 5% down on construction loans, just as you can get on the mortgage for your 30-year loan, so come talk!
  3. Let’s make sure new build is what you are looking for!  We are professionals.  Bounce off your plans, needs, and goals with us; it’s what we are here for.  Maybe there is an option you never thought of, a location you hadn’t considered, an existing home that would be a perfect fit.  At Hillcrest, we want to get you into the right home, not just any home; so we guarantee you it’s worth your time to give us a call.

 

So, back to the question.  The short and concise definition of pre-approved* is: ­­­­­­­A letter from a bank approving you for financing, which may be fine if you are buying existing real estate.  The asterisk next to the term means: “Call Hillcrest before the bank”.

Hillcrest Builders

Comments are closed.