The importance of
pre-qualifying
With
the technology available today, once the thought “let’s buy a house” jumps into
your head there is generally a B line to the World Wide Web. The excitement and fun in looking
is all well and great and to be expected.
Please keep in mind however that it is essential that you also get
pre-qualified for a home loan as quickly as possible.
Shopping without a
budget
You
certainly wouldn’t (or shouldn’t) buy a car without a pre planned monthly
payment or total out of pocket expense already factored, doing so would be a
deterrent to yourself and negotiation tactics. The same holds true when purchasing a home, truthfully, even
more so. Each and every home
is going to carry separate and sometimes vastly different hold costs. Factoring in taxes, millage rates, HOA
fees, insurance premiums, etc. will have a big impact on your monthly
payments. Not having a firm
understanding of what your true monthly budget and/or out of pocket expenses
will be simply makes you unready to pull the trigger when it’s go time.
Pre-Approval Letters
Any
seller’s agent with the goal of protecting their clients as well as the
transaction will ask for a pre-approval letter with an offer or once a contract
is completely executed. As
the market continues to rise, quality homes are seeing fewer days on market. You don’t want to lose the home you’ve
been searching for because you didn’t have your paperwork in order. What you expect you are able to afford
and what the bank is willing to allow may differ significantly. Be sure you
speak to a qualified mortgage broker and obtain a pre-approval letter prior to even searching for a home. This will place you in a position to
win once the prize is in sight!
Better Negotiation
Techniques
Many
buyers and sellers like to play the negotiation game when purchasing. As homes are generally not priced
“firm”, and it is common that a buyer will submit a first offer much lower then
list without being demeaning to the home or owner. This offer is in attempt to start the negotiation process
and get a feeling of where the buyer’s actual “sell price” sits. Without knowing your true purchase
power and manageable monthly costs you can’t logically negotiate prices and
terms of a contract. Educating
yourself and being prepared for true anticipated costs puts you in a much
better position to negotiate and allows you to do so in a safe way.
Buying
without first qualifying is like driving without a seatbelt, you may make it to
the destination ok – but risk WILL be involved. It only takes a phone call; if you are thinking of or ready
to purchase a home, make the call.
Get pre-qualed and then search
for your perfect home!!
