2008 is history and thoughts are turning to the new year and our New Years resolutions. If your New Years resolution involves buying a new home in 2009, it would be wise to get preapproved by an experienced lender as soon as possible. There is some anticipation of a pent up demand for home purchases and an upswing in sales in the coming year. Many prospective buyers have been sitting on the fence, waiting to see if prices and interest rates will continue to fall. You want to be ready to move quickly when you believe the conditions are right. Being preapproved is your ticket. The sooner you do this the better.
Knowledge is power, and when you know your precise borrowing position, your chance of success in finding the perfect home at the perfect price is increased. You will avoid disappointments, and your Realtor will be an a wonderful position to successfully negotiate on your behalf.
During the preapproval process, the lender can advise you what you can do to overcome problems with your credit score. Often, it can be improved significantly in just a few months time with some strategic planning. Your lender can advise you which debts might be best to pay down or pay off. They can tell you how much of a loan you qualify for, based on how much your down payment will be. This tells you the price range that you should be home shopping in. If that payment amount is more than you are comfortable with, the lender can work backwards and tell you the price range that will produce a payment at your comfort level.
You will learn about the various loan and/or down payment assistance programs that you might qualify for. Your lender will be able to tell you how much cash you will need for a minimum down payment based on the loan program that makes the most sense for you, and give you the total of your estimated closing costs. This will give you a pretty good idea of the total cash you will need to purchase your home.
If you are getting down payment funds through a gift or from the sale of an asset, they will tell you how to best document this so it does not become a problem to get the loan approved.
The low interest rates and excellent homes values make this an extraordinary time to buy a home! Call me today and lets get started!
Janna Rankin Scharf, AB, GRI, CSP, CNS, CLHMS, provides a superior level of real estate services to home buyers and sellers in Coeur d'Alene and Kootenai County, Idaho. Visit www.JannaScharf.com to search for homes in the Coeur d'Alene MLS for anywhere in spectacular North Idaho.
Janna Rankin Scharf, 208.651.9700 NorthIdahoJanna@gmail.com
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