You’re finally ready to make the dream of home ownership a reality. The excitement sets in and you start surfing the web for that perfect house. You see it on the screen and can’t wait to put in your offer.
Many times, potential home buyers skip (what should be) the first step in the process. Getting in touch with a lender (bank, mortgage broker, etc.) is the most efficient way to begin your home search. There is “buyer power” in consulting with a lender first.
Here are a few reasons:
1) Buyers are aware of what they can afford monthly but often unsure of what that amount may equal to when it comes to the price of a home. Taxes and insurance as well as the interest rate must be made a part of the monthly payment. A lender can give you a price range to stick to in your search, based on what you are comfortable with paying every month.
2) In many instances, there are loan programs available that would be a great fit for a buyer. Some possibly offering minimal or no down payment. However, the loan program may exclude properties that need significant repair or remodel. Your loan officer can let you know the differences in those programs and give you options for what best fits. Then you can rule out or include what is recommended.
3) Sellers want to see offers from buyers who have been pre-approved/qualified. Submitting an offer without a letter indicating approval or qualification may be viewed by the seller as weak or unsupported.
The majority of lenders can pre-qualify you over the phone or online in minutes based on factual information you supply. Paperwork to verify the information will eventually be requested but the initial process is fairly quick. You have the right to shop for your loan. I suggest contacting a minimum of 3 lenders to compare rates, loan programs, and lender costs associated with the loan. As long as you are having credit pulled for the purpose of a mortgage and it is done within a small time frame (try to contact all 3 within 30 days) you shouldn’t see a negative credit score impact for inquiries.
If you are ready to take the step towards being a home owner and need guidance in finding the right lenders to contact – I CAN HELP! Contact me anytime.