Recently I have had several home buyers introduced to me by REALTORS® who have not been prequalified prior to searching for a home.

Potential home buyers must prequalify so that they do not get their hopes up in looking for a home that they cannot afford. There are so many Orange County homes for sale, but in order to obtain the best priced for one's budget - it is vital that they speak with a mortgage professional who understands mortgage underwriting guidelines.

While lending guidelines have tightened, many doors have been opened by FHA loans in Orange County. Sellers may contribute up to 6% to cover a buyer's costs, and buyers need only 3% down! The key aspect to this is that a buyer can actually afford the payment on their home purchase.

There are many foreclosures in Orange County, as well as other distressed homes that are for sale at well-below market value. These are fantastic opportunities to take advantage of all of the programs available for first time home buyers.

A first time home buyer's first phone call should be to a trusted mortgage professional. Next, that mortgage professional will recommend that they speak with a REALTOR® who is an area expert to assist in finding their dream home that fits into their appropriate budget. The mistake I see is that real estate agents get their clients excited about a home that is above their appropriate price, and then the mortgage professional is stuck attempting to fit a "square peg into a round hole" which wastes everyone's time. This could all be avoided by a buyer having received a prequalification letter for a specific loan amount and loan product.

While searching for a home can be difficult at times, it is one of the most exciting times in one's life!

If you would like more information on how to prequalify for a home loan or to receive a referral to a great REALTOR® in your area, please contact Orange County Mortgage Planner Galel Fajardo.