Buying A Home
In today’s competitive real estate market, buyers need a plan or road map for the home buying process. Real Estate in today’s market has so many steps, forms, disclosures, types of inspections and so on. We will discuss in this article some of the first steps in the home buying process. We will continue with the additional steps in the days and weeks ahead.
The first steps are interchangeable and crucial, and I believe the most important.
The Pre-approval
Getting a pre-approved for a mortgage, Don’t mistake it with pre-qualified. pre-approval is the strongest commitment for a mortgage where you have given documentation to receive this pre-approval. This means you can go out and find a home today, put this home under contract and expect to close as long as the home passes your inspections and reviews.
The pre-approval gives you the knowledge of how much you can comfortable pay on your mortgage each month. Another thing I tell my clients is, that it is your monthly payment that matters more then the price of the home.
The advantages of having this pre-approval is that in any negotiations for a home you are in a strong position. Furthermore almost every home listed, the seller will not even look at your contract without a pre-approval. Think of it this way, say you found a home you love today. If you don’t have a pre-approval, you would need to obtain one. It can sometimes take days for your bank, mortgage broker or financial institution to write one for you. It also can just take time for your to gather up the documentation requested. What do you think happens to that home you loved? Do you think there will be others that love it also?
What I tell clients I work with is to talk to their Bank, credit union or financial institution they have a relationship with. And possibly ask multiple institutions to obtain the best rate. Asking for multiple quotes does not affect your credit, or cause issues. It helps you save money and can qualify you for more home. I also if needed, can provide a list of some of the best in the market mortgage brokers and institutions.
