Homebuying 101

When you are looking to purchase a home, there is so much more that goes into just finding the perfect home. Making sure that you have gotten pre approved from a mortgage banker or  mortgage lender is one of the first things that need to be done to start the process. Finding out how much home you can afford, what your interest rates and terms, and knowing what type of payment you will be taking on, can make your deciding on a home key.

One of the most baffling things is I find more potential homebuyers out looking actively looking at homes, without taking the step of pre-approval first. Most people assume because they make a certain amount of income that this automatically makes them qualify to purchase. This is a very wrong assumption because lenders use what is called debt to income ratio into consideration when looking at an applicant for a home loan. This means that they take into account the person's income, and the amount of debt to come up with how much home they can afford. Having this pre approval in hand before shopping prepares the buyer a great deal.

Listing agent will most often always take a buyer more seriously if they have already taken this key step, and some even require that it accompany they offer. They do not want to go through the hassle of negotiating and excepting an offer, to only come back and return it to the market if the potential buyer cannot get approved. This causes the seller to lose time off the market with an unqualified buyer.

Imagine this. You set off to the store looking to buy some items at the store. You pile your basket with items that you need, and head for the register. The cashier rings up your items and tells you that your total will be $34.95. Do you expect that you will be taking those items with you with no money? I think not. So why is it that you would assume that you would be able to do it with one of the most expensive purchases that you will make in your life. 

Make your home buying experience a smooth one, by getting pre qualified before shopping for a home. This will ensure that seller that you are presenting an offer to, that you are a serious buyer. If you are not sure where to go to get pre-approved, let me point you in the right direction. I have worked with most of my loan officers for an extended period of time, and they are more than able to assist you with all of your loan needs. Contact me today.