There are three general types of lenders:

• Direct Lenders - large financial institutions like Wells Fargo Bank and smaller ones like Credit Unions.
• Mortgage Brokers - they find money for a fee. Lending Tree is a Mortgage Broker.
• Hard Money Lenders - these are used by Investors for short term loans.

Questions to answer and discuss with your lender when you are serious about buying a home are:

• Do I have a Bankruptcy on my record?
• Am I charged with any liens? Mechanics liens on prioperties that I own or liens on automobiles?
• Must I make any payments for taxes to the IRS or the State of Maryland?
• Are you divorced? If so, do you make house payment in lieu of child support? For how long? What is in writing about this arrangement?

As your agent I do not need to know the answer to these questions, but you should discuss them candidly with your lender. If you do not, the lender will eventually find out as they research your credit history. This could result in being denied a loan at the last minute making you loose the home of your dreams.

One last detail, after writing an offer on a home, do not purchase anything on credit until after settlement on your new home. Any purchases and credit changes could result in being denied the loan needed to purchase your new home.

Pre-Qualified Vs. Pre-Approved

Pre-Qualified = Shopping for Loan -- Contact by telephone a loan officer at a solid lender like Wells Fargo Bank. The buyer gives information verbally over the phone to the lender's loan officer and they say based upon the conversation that the Buyer is pre-qualified for a specific loan program such as a Conventional Fixed 30 year loan at specific stated interest rate (e.g. 4%) with specific stated down payment (e.g. 10%). Buyers often talk pre-qualification with several lenders to shop around for the best loan deal.

Pre-Approved = Lender Commitment -- Follow up the telephone contact with your chosen lender providing written documentation (pay stub copies, copies of loan payments, bank statements, and more as requested). The lender reviews the information and then issues a loan pre-approval letter saying that the Buyer can borrow $220,000 in an FHA fixed 30 year loan with specific stated interest rate (e.g. 3.9%) with a specific stated down payment (e.g. 3.5%).

These steps get the buyer ready to purchase a home because:

• They know exactly the maximum they can borrow and
• They are prepared to write an offer when they see a home that they like.
• They can visit homes with buyer's agent because they are a serious buyer. Licensed Buyer's agents are obligated to listing agents (and thus to sellers) is to show homes to people that are ready, willing and able (that have a pre-approval letter) to buy their home. Licensed agents are not authorized to show off any home to anyone that wants to look at it because there are risks like taking a home off the market when a buyer cannot buy it, accidental damage impacting the value and more.
• Sellers will not accept any offer without a pre-approval letter and a bank check for $1,000 or more earnest money deposit. The bank check must be delivered to the listing agent or title company within 72 hours of initial contract acceptance by the seller.

To become pre-approved with a lender you must typically provide:

1. Social security number.
2. Bank statements for the past three (3) months.
3. Current month pay stubs.
4. Name, address, and a phone number of present and all past employers.
5. Income tax returns for the last two years.

Self employed people must provide similar information.

There is typically no charge for becoming pre-approved. Banks often charge buyers when they apply for a loan but this is after an offer has been accepted by a seller.

Good Lenders to Contact

Tracy L. Hall
Vice President
Howard Bank
10985 Johns Hopkins Road
Laurel, MD 20723
Tel 301 490-2100
Cel 443 812-1226
Fax 301-490-1302
thall@howardbank.com

Mark McNicholas
1st Mariner Mortgage
10101 Philadelphia Road
Baltimore, MD 21237
Tel 410 931-9466
Cell 410 322-7457
Fax 410 931-9022
mmcnicholas@1stmarnierbank.com

The legal department at WELLSFARGO Bank has requested that there be no links (click and go links) to their .COM web site. In my opinion this is representative of the current big corporation lawyer and big government micro management of our lives and freedoms. Such micromanagement just gives corporate lawyers and government bureaucrats a justification for their jobs. However, such micromanagement hurts home buyers and small business. In my opinion WELLSFARGO Bank and big government are now micromanaging other people's small businesses. Such micromanagement of small businesses stops those businesses from growing and creating new jobs. Thank you WELLSFARGO bank and big government for your diligence in micromanaging this site.

As per legal department at WELLSFARGO Bank's request all links to WELLSFARGO Bank's .COM site have been removed. One must type in the full name of the bank "WELLSFARGO" and add ".COM" to that name to get to the site because there are no click and go links as per this request. I believe that presenting information about a website is not linking to the web site and covered by our freedom of speech. Also this should not be misconstrued as a recommendation for WELLSFARGO Bank and their .COM web site.

It can be helpful for you to find out on-line how you stack up for a home mortgage. To assist you a pre-qualification form (this is not a pre-approval but just a first step in becoming preapproved) can be found by searching on Bing.com for "wells fargo home mortgage public site forms." A click and go link to this preapproval appears below the paid advertisement links.

Please contact me at 410 615-3655 if you have any questions and need the name a lender if you wish to get pre-approved and become a serious buyer so that I may refer you directly to a credible lender. Thank you.