Getting pre-qualified for your home purchase is very much like sticking your toe in the pool's water to see how warm or cold it is. Things move slowly and tentatively at first, but get positive feedback on your credit and finances from your lender ... and you want to get in the water the rest of the way!
Now, just as there are differences in the style of entry into water, there are different styles of entry into the real estate market too. Some people slowly and conservatively ease themselves into the "water" trying to acclimate themselves to the changes in its' temperature and depth, (ala a townhome, fixer-upper, or smaller home). Others jump right in, cannonballing and hurling themselves, creating a big splash, wanting the maximum home they can possibly afford.
Those more conservative in nature will wish for a safer and less stressful buying experience. Others more daring will try the more advanced methods. As mentioned in a previous blog, I recommend a progression of choices during a search for a home. Just as I would recommend starting in the shallow waters of the pool while learning to swim, I also recommend that a home search be made in the safest, easiest real estate pool possible. The progression of my recommendations are:
- Relocation Companies (Putting your tanning lotion on)
- "Estate"-owned Properties (Reading the Swimming Instruction Manual)
- Private Investors (Flips) (Donning Swimmies)
- Reasonable Sellers (with equity) (Getting your face wet)
- HUD-owned Properties (FHA Foreclosures) (Learning to float)
- Bank-owned Properties in REO Departments (Practicing the arm strokes)
- Short Sales (Needs Bank/Lender Approvals) (Getting on the diving board at the deep end)
Right now, we are heading into the warmest part of the year, not only in temperature, but in real estate. Spring and Summer are typically the "hottest" times for real estate activity. With a rebound of home sales being hinted at in areas across the nation, the temperature of the water within the pool of avail
able homes on the market is close to perfect for an entry, especially if you're a novice buyer/swimmer. (For first-time buyers, they're even paying for the swim lessons, coach, and gear! See the First-Time Home Buyer's Tax Credit contained within the stimulus package.)
No one (particularly first-timers) should ever try to enter the water on their own without a professional licensed lifeguard or swimming instructor to guide and protect them. Purchasing a home should be no different. A mortgage lender should serve as the swimming coach that will assist a potential buyer through the sometimes hazardous waters of a home purchase. They should instruct and protect a buyer until they can float and swim in their own financial waters. And, if they are truly professionals, they'll be there to throw their client a life preserver should they need it, "spotting" them with their continuing mortgage planning services whenever they re-enter the waters to swim in the future.
On a hot summer day, nothing seems more pleasant and relaxing then a swim. Coming home to a home that is yours is an even bigger pleasure. When the temperature or weather does not permit a dip, your home will calm and refresh you. Your home will provide you peace and tranquility of the spirit at the end of a long day. It has the ability to heal, nurture, and make you feel safe and warm.
With the proper guidance and assistance by real estate professionals, the timing is right for more buyers to enjoy these "waters" again. Buyers can find a qualified swimming coach and get the counseling, advice, and assistance necessary to obtain a successful pre-qualification and home purchase.
They should dive right in ... the market's fine!
Gene Mundt, Professional Mortgage Banker www.genemundt.com Chicago Bancorp
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