Purchasing a new home--get pre-qualified first

The banks are so inundated with refinances of existing homes that new purchasers are being slowed down in their approval. If you are interested in purchasing a house, it is always best to start your search with a pre-qualification letter from a LOCAL (Alaskan) bank or credit union.

There have been a few successful refinances through internet lenders, but we have yet to see a successful purchase of a home with an internet lender. Everything looks fine up until about three days before the close when someone somewhere suddenly says, "Where the #@$% is Tok, Alaska? We can't loan in a place no one has ever heard of." End of sale.

Sellers are becoming more and more aware that a buyer needs a pre-qualification letter for them to accept an offer, so make life easy for everyone and contact your bank before you begin looking for a new home.