With talks of low interest rates, tax credits, and favorable home prices, many people here in the Cleveland metropolitan area are beginning to think about buying a home. Whether you are buying your first home, you are a move-up buyer, or are downsizing, having your finances in order is the essential first step prior to beginning your home search.
Many people, especially first time buyers, begin the process of buying a home by looking at homes, not only on the Internet, but also in person. While looking at homes is fun and exciting and certainly a big part of the home buying process, many potential buyers overlook the importance of getting pre-approved for a loan FIRST. The pre-approval process is fairly simple and can often be done initially over the phone in a 10-15 minute conversation with a qualified mortgage professional.
There is nothing worse than seeing the dreams of a home buyer crushed when they find out they cannot qualify for a loan on the home they have ALREADY fallen in love with. Here are some additional reasons why getting pre-approved is a smart first step to the home buying process.
Get Pre-Approved FIRST --- BEFORE shopping for a home!
1. Having a pre-approval up front will let you know your price range. Looking at homes above your price range can be frustrating and a huge waste of your valuable time. Know how much you can qualify for up front.
2. Having a solid pre-approval will help you stand out from other buyers. Bidding wars occur all the time, even in a buyers market. If you fall in love with a home, odds are that someone else will like that home too. Having a solid pre-approval to buy may give you that edge over another buyer who is not as prepared as you.
3. A Pre-Approval gives you piece of mind that you can make an offer with confidence. Buying a home can be a very emotional decision. Once you find that special home, an approval will allow you to move forward without any doubts about your financing, thus alleviating unnecessary stress and aggravation.
4. Going through the pre-approval process gives you a firm understanding of the steps that lay ahead as well as the costs and options available to you. The loan process can be very overwhelming if you are not properly prepared. Take the time to sit down with a mortgage professional and discuss all of your options. Don't overlook this very crucial part of the home buying process as there is a lot of information to digest.
5. There is less stress getting pre-approved up front. Nothing is more stressful than finding a home you love and then having to scramble at the last minute to come up with a pre-approval on a tight deadline. Having the luxury of being able to take your time and getting pre-approved first allows for a much smoother home buying experience.
6. Over 20% of all credit reports contain errors. Getting pre-approved BEFORE shopping for a home will give you sufficient time to address any mistakes, if any, that appear on your credit report that may keep you from getting approved for a loan.
7. A pre-approval makes the seller more comfortable. In today's strict lending environment, more and more homes fail to close at the last minute due to financing problems. Sellers have become very nervous and showing them that you are a solid pre-approved buyer will make a big difference in negotiating the best price on a home.
8. Getting pre-approved is FREE!
The Schuman Team highly recommends all home buyers get pre-approved before beginning their home search. Even if you have purchased a home in the past, the lending environment has changed dramatically over the last 6-12 months. Just because you didn't have any problems getting financing the last time you bought a home doesn't mean you shouldn't get pre-approved prior to looking at homes.
Looking to buy BEFORE selling? There are a ton of options at your disposal that will enable you to buy that dream home prior to selling your existing home.
Re-locating from out of state? Remember, all states and cities have different rules and guidelines when it comes to lending. We highly recommend using a local mortgage professional who is familiar with some of the local nuances such as point of sale inspections and has contacts with local appraisers who are more likely to know the Cleveland housing market better than someone not from the area.
For a quick and easy confidential consultation, we recommend contacting Sean Hadley at Heritage Mortage Services. His direct line is 216-378-4848 and email address is shadley@heritagems.net.
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If you are looking to buy or sell a home in Beachwood, Moreland Hills, Orange, Pepper Pike, Solon or the surrounding Eastern suburbs, please contact us as we would be happy to show you why people love working with the Schuman Team.
Dan and Amy Schuman are Solon residents. We use our home staging expertise to sell listings quicker and for more money. The average home in the Cleveland area sold in over 100 days in 2008 and our listings sold in less than 60 days. The Schuman Team specializes in luxury homes and are members of the Luxury Home Consultants of Keller Williams Realty Greater Cleveland and of the prestigious Institute for Luxury Home Marketing, the premier independent authority in training and certification for real estate agents working in the luxury home market. We also work extensively with buyers and sellers who are relocating in or out of the area.
To see all homes currently on the market in the Cleveland area, click here. For a personal consultation or to speak directly to The Schuman Team, call 216-346-3235.
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