It's Never Too Early to Start Working With a Lender

If you are contemplating purchasing a property in Park City it is never too early to start speaking with a lender.  Selecting a local and knowledgeable lender early in the process will work to your advantage every step of the way.  Financing a real estate purchase has seen tremendous change since 2008 and remains challenging even for the most qualified borrowers.

Early Pre-Qualification Advantages

Being pre-qualified expedites your property search, directing you towards properties that fit your goals. Then you can make decisions based on the loan products available to you. Down payment requirements will vary by property type and can vary by buyers’ credit scores. Credit scores can also be a factor in interest rates. 

Being pre-qualified strengthens your position at time of offer.  Once pre-qualified you can act quickly in today’s competitive market.  A “conditional” pre-qualification letter accompanying your Real Estate Purchase Contract also increases the credibility of your offer, and can be the winning difference in a competitive offer situation.

Why a Local Lender?

Resort lending is certainly different than lending in other areas.  Experience shows that having a strong banking relationship does not guarantee a smooth transaction when buying in a resort area.  It is especially critical when obtaining financing for a resort-town condominium to choose a reliable local lender.  It is all too common to have an out of area lender say that they can do the loan, only to find late in the process that in fact the loan product is not compatible with the property.

Local lenders know the area, understand the unique mix of properties, and what is needed to maintain successful financing for each.  As a practice they keep project documents on file, and are continuously updating them.  This allows them to submit a package that meets all the requirements to ensure successful underwriting and loan approval.

A critical component of a successful loan is a good appraisal.  If the lender is out of area the appraiser will be assigned randomly and may not have enough familiarity with the property.  In contrast, local lenders will already be working from a pre-selected panel of vetted appraisers that are very familiar with Park City properties and their differences.

Lastly, local lenders work hard to build relationships with local Realtors. To maintain these relationships they must consistently perform for their clients, and by extension the agents that represent them.  Local lenders therefore are highly motivated to go the extra mile in order to ensure a smooth transaction for you.

Financing in Park City is unique.  Please consider Tom Ward a resource for all facets of the buying process, including how to access the best financing available.

Tom Ward, REALTOR ®
Tom@PCNeighborhoods.com
435.647.3727