Spending time in the office, I get many calls where people are interested in a house, but are not yet prequalified for a loan. This is the first step to buying a home...to talk to a lender and see what you can afford, what kind of loan you will most probably get, and things to look for when buying a house.
Take a minute and think about this---Don't act like the 19 year old that went to Target, filled up a cart with tons of junk, then got in the check out line and signed up for a credit card. Once denied (10 minutes later), didn't have the money so just walked away...leaving the check out teller mad, the customers behind them angry, and themselves embarrased and livid!
My point is this: It is a GREAT time to buy a house...if you are qualified!! In my opinion, it is a buyers market. More homes are on the market right now, prices have stabalized, and rates are incredible. But, first things first! Get Pre-Qualified from a licensed lender in your area. Don't be scared to ask questions and get informed.
I'm not saying its hard to get a loan. I'm trying to convey that it is obnoxious to go through the motions with the intent that it isn't going to be a problem getting a loan and then finding out otherwise. For instance, after spending three Saturday afternoons showing a client homes (because they told me getting a loan wouldn't be a problem), we find the house they want. It needs work, but they wanted a home that needs work. The seller is requesting a proof of funds letter or a preapproval letter from a bank with all offers. So, as we write up the contract, I ask if they brought their letter. Then, I find out they haven't even talked with anyone yet. By the time they contact a lender so we could finish writing up our offer, they found out they could only go FHA and were preapproved for about 80% of the asking price...this house was not in their range at all!! Plus, the condition of the house made it tough for FHA financing. So, I was upset, the clients were upset, and the sellers were upset. These clients wasted time, hope, and money from many people.
If you are scared to talk about your finances with a mortgage lender, you may not be ready to buy a house. Sooner or later, if you plan on buying a house, you will have to talk to someone. You will need statements, copies of your tax forms, and other proofs of income. You will get your credit checked. You will need to explain any defects or past problems in your credit history. Its a fact, and if you are not yet mature enough to do this, you are not ready to buy a house. This is why its step 1 in the homebuying process. Why spend time looking at homes you may not be qualified for? Why take up the free time of agents who spend their own money on gas in the hopes you will find and purchase a house, when you haven't done your homework yet?
I'm not a mean person, I will be more than happy to meet with first time homebuyers and show them a few houses to get an idea of what they are looking for first. But, after that, I would hope they trust me (as I put my trust in them) and go and get preapproved for a loan! If we found something, I would need to know what kind of loan they are getting (we put that in the offer), how much of the purchase price they are financing (are you getting a loan for 100%, 80%, 97% of the price??), and who the purchasers are (Do you need your Mom or Dad to cosign the loan?? Then they might need to be on the purchase agreement, too!!)
Comments(0)