The difference between being pre-approved and approved for a loan is a huge difference. When you are looking at property, it is always a good idea to meet with your preferred lender first and get a sense of what programs are available, what price range should you be looking in and what limitations exist on the various types of loans. This discussion should also include you providing your lender with enough information to be able to run a credit check on you, so that you as the buyer can be assured that YOU are pre-approved. Whether you are purchasing a primary residence where you are going to live full-time, or a second home in a resort area like Winter Park, it’s always a good idea to touch base with your banker or lender and get that pre-approval process started.
In the ski resort market up here in Winter Park, Colorado, even buyers that have been pre-approved then need to get the complex or subdivision approved for the loan. This ski resort town has condominiums, town homes, single family homes and vacant land, all of which have different aspects that make them a bit confusing to some lenders. Once the buyer finds the property of their dreams, they will then put it under contract, obtain an appraisal, satisfy the title process and the inspection process, and then go through underwriting both for the buyer and for the complex/subdivision. By the time the buyer gets to the closing table, the loan has been funded so the money is waiting to be disbursed. This is what it means to receive approval for the loan, it’s at the very end of the transaction.
Purchasing mountain resort property is fairly similar to purchasing a primary residence but sometimes, even though the buyer has been pre-approved by the lender, the lender then needs to “approve” the property. As confusing as this may seem, it is a process that tends to take place seamlessly and behind the scenes. In closing, let me just emphasize the fact that real estate professionals, like those found at Real Estate of Winter Park, can make this process so easy. Just give us a call and we’ll help you every step of the way.