It's NOT a big f....ing deal, but it IS a big deal

It’s NOT a big f...ing deal, but it IS a big deal


What on earth is this about, I’m sure you’re asking?. I’m only playing on the words of a very high government official heard on open mike a little while back whispering in the ear of yet another very, very high government official that “This is a big f…ing deal”. I, on the other hand, am saying it is just a plain vanilla big deal! Got it? Just trying to get your attention! Now that that is out of the way, here we go.

Time and time again I encounter potential clients at open houses who are ever so reluctant to commit to a Buyer’s Consultation or even the idea of contacting a lender. It is well understood and appreciated that the internet has given buyers a powerful tool towards self sufficiency in the buying process. They are able to do a lot of initial research. They are more informed. They are more in charge; and because of this, they can be somewhat dismissive of a realtor’s offer to assist with the buying process.
I do not want to go too much into the full Buyer’s Consultation in this article. Rather I would like to  focus on the lender approval for now.

Yes, my dear home buyers, especially potential first-time home buyers, it is a big deal, not a big f…..ing deal, to avail yourself of the expertise of a lender before starting your home search.

 
I always wish to know if the house that you are looking at is within your price range. An affirmative answer elicits my congratulatory statement to the effect, “so, you are already pre-approved then” . I’ll get an array of responses –“We’re just beginning to look”. “We don’t know exactly what area we want to be in”. “We have excellent credit”. “That won’t be a problem for us”. Particularly after this answer, I’ll ask if they are cash buyers, which usually they are not.


Now all those answers are fine; however, in the interest of saving time and frustration, it is a good idea to contact a lender first. Yes, it IS a big deal. It is not simply about credit. Yes, you do need to have good credit in this climate of heightened credit standards and tight lending practices. Here are some questions that will enter into the equation for the lender.

What kind of job do you have? Is the income steady? Is it seasonal? Is it properly documented? Are paystubs readily available? Can it be verified?
Are you self employed? This will require two years of documentation, for instance. Does it match your tax returns?
Are you paid primarily by commissions? Again, this is going to require at least a two year history, no matter the size of these payments.

Do you have a credit record? No matter how good a steward you are of your money, if you don’t have a credit record, there is going to be a problem. Usually, in order to rectify this, you are going to have to take time to build one!
What kind of monthly payments are you comfortable with? What price home will give you these payments?  The answer will take into account size of down payments, type of loans, etc.

A lender will go through all this with you and ensure that any potential minefields are brought to your attention before you begin your search and God forbid, find your dream home, only to be stopped in your tracks as a result of one or other of the potential issues outlined above.

So, potential home buyers, please get a pre-approval done first before embarking on your home search. Better still, give me a call at 703-920-0003 or contact me via my website because although it is NOT a big f….ing deal, it IS a big deal to get your pre-approval. I will point you in the right direction. 

Let’s work together and get you into that new Arlington home bright and early in the New Year!