Searching for a new home can be fun and exciting, but it’s important to make sure there aren’t any financial obstacles in your way before you embark on the home buying journey.
Imagine finding your dream home. It has everything that you want – a big open floor plan, an updated kitchen, a view of the water and plenty of room for your growing family. The only hitch? Lots of other buyers are interested in the house too, and you find yourself in a multiple offer situation. You haven’t spoken with a lender yet, and you haven’t obtained preapproval for a loan. What happens next? You’ll likely lose out to a buyer with solid financing in place.
The Moral of the Story?
Speak with a lender BEFORE you start searching for a home so that you understand (1) what loan options are available to you and (2) how much money you can afford to borrow. A good lender will ask you for lots of information before providing you with answers to those questions. They’ll ask you about your employment history, your borrowing history and your credit history. They’ll also help you understand what NOT to do before getting a loan for your new home purchase (i.e. financing a new car). Once you’ve provided your lender with all the necessary information and you’ve received a solid preapproval letter, you’ll be ready to start shopping for your new house – and you’ll be glad you did your homework. In a competitive housing market like this one, it’s common for listing agents to contact a prospective buyer’s lender to make sure the lender has done a thorough job vetting the buyer’s finances. You’ll want to make sure your lender can respond to that call with a firm YES.
When you’re shopping for a lender, a recommendation from a Realtor that you trust is always a good place to start. Picking a lender is a little bit like picking a doctor. You want someone with experience, someone who makes you feel comfortable and someone you trust. You’ll also want to make sure the lender that you’re considering has a loan program that’s right for you and a good record for closing on time.
If you have any questions about the home buying process and/or if you’d like more information about reliable lenders in the area, give me a call. I’m here to help.
Miles Eaton is a top-producing Realtor with Windermere Professional Partners, specializing in residential real estate in Tacoma, Gig Harbor, University Place and Lakewood.
Miles Eaton: (253) 355-5862