Let’s get back to square one and revisit what your first step is in the home-buying process. Before you call a Realtor about a house you saw, before you even think about setting your heart on any certain house – talk to a Lender. Don’t get me wrong: I LOVE getting your first phone call! However, after the initial excitement, I’m going to ask if you have talked to a Lender, and send you to one if you haven’t.
Right now, this market is hot hot hot and things move quickly! So, you want to make sure you have your ducks in a row before you start looking at houses. The last thing I’d want for you, as a buyer, is to have to wait several days before you can put an offer in on a home because we have to know if you qualify!
Talking to a lender first ensures you’ll be a competitive buyer in the correct price point; just because you qualify for $$$, doesn’t mean you necessarily should buy that home. Talking to a lender can give you an idea of monthly payments. For instance, I qualified for a home $50,000 more than I realistically could afford mortgage payments on. I would not have known that had I not talked to my lender who was able to give me a good idea of where I stood as a buyer and what my monthly breakdown would be.
This brings me to my next point: Be Realistic. A 30-year mortgage is a big deal. You don’t want to put yourself in a position of hard decisions for that long because you got the most expensive home you could qualify for! Talking to a lender first can help you put the right foot forward in where your search should begin. Not looking at the home just out of reach might mean not falling in love and having this conundrum to begin with.
Finally, calling your Realtor first might help in one important way: by sending you to tried and true Lenders we’ve worked with before and have great experiences with. They aren’t all created equal, and just like finding a Realtor you jive well with, you want to feel comfortable asking your Lender every question that pops up!
I hope this helps you put the right foot forward in your home-buying experience! As always: the more you know the better off you’ll be!