Sunday, April 1, 2018 / by Clark Jones
The mistake that too many new home buyers make is they want to immediately jump into looking at homes. They've made the decision to buy and are super excited to start. This can be a monumental mistake. Why? Too often people are in "la-la" land or in a fantasy world and want to visit homes that they think are pretty cool on line. They've always wanted a big home. They've always wanted a huge kitchen or perhaps a large yard. So they see the home of their dreams on line, call a Realtor who they don't even know or have interviewed, and next thing you know they're standing in this beautiful home. The Realtor asks them, "So what are you pre-approved up to?" (Many Realtors won't even schedule the appointment with you unless you've signed a buyers rep and have given them a copy of your pre-approval letter) All to often the next phase is the hard core reality conversation where the Realtor will say, "Before starting the buying process, you must have a pre-approval letter stating how much you can buy up to. Sellers and listing agents won't even consider your offer without it."
So to aid in your buying experience, first do your home work. Determine what type of mortgage payment you can comfortably afford without stretching yourself too thin. If you don't have a monthly budget, look at all your expenses, your bills, etc. Once you have this valuable information, ask a Realtor who their favorite lenders are. Gather up your last two years of tax returns, W2's, last couple months of pay stubs, and then schedule appointments with lenders. The lender will then take your info, ask for a loan application, run your credit, and plug all your info into their special formula to determine how much you can afford. They will also give you estimated payments for different prices of homes.
Once you have a letter in hand, then it's time to interview and hire a Realtor to start the buying process.
For more information watch the attached video.