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Before We Start Looking For Your New Home, Did You Talk to a Lender?

By
Real Estate Agent with 805 County Real Estate

BuyingThe first thing I recommend to all of my Homebuyers is to have an in depth consultation with a reliable Mortgage Consultant. It is crucial that every homebuyer sets a mortgage game plan a side before the start of their home hunt with their agent. You probably already know the city, number of bedrooms, and layout of the house you have in mind so why not prepare your financial outline with the same due dilligence?

Can You Do It?

We have all heard about the rise in delinquencies and foreclosures in the real estate market all over the country. The much reason for this occurrence is that borrowers who took out the interest-only or negative-amortization loans are now stuck with much higher payments because they did not think a head.

So, if you can not handle an adjusted rate mortgage, remember you are in charge, tell your lender; no thank you.

Can You Afford It?

You set up your housing budget, not your lender.  The lenders will usually document your approval at the highest possible loan amount for which you qualify. One reason for this is that they will make more money if you borrow more money.  Both life and being a homeowner have unexpected expenses which need to be taken into consideration as you place a dollar amount on your mortgage amount.

Now, after you have examined the complexities and risks of a home mortage and discussed them with a mortgage professional, get together with your real estate consultant and begin your home search with greater confidence and peace of mind.

 

Comments(37)

Mana Tulberg
805 County Real Estate - Camarillo, CA
Real Estate Agent - Camarillo CA
Ilyce, You are welcome. We do that for most of our shopping I don't understand why people don't do it for their biggest purchase
Sep 04, 2007 04:07 PM
Rita Taylor
None - Sanford, NC
Sanford NC Real Estate - Homes for Sale in Sanford North Carolina

Mana,

This is good advice - I always try to ask folks about this the first time I talk with them.  I have had to learn just how to approach it and it is different with each person.  Nothing is worse than wasting a bunch of time for everyone only to find out they can't buy the home they have their heart set on.  

Sep 04, 2007 04:30 PM
Mana Tulberg
805 County Real Estate - Camarillo, CA
Real Estate Agent - Camarillo CA
Rita, You said it my friend.
Sep 04, 2007 04:47 PM
Thesa Chambers
West + Main - Bend, OR
Principal Broker - Licensed in Oregon
I love this approach and it is the approach I use also.... I want the home to fit my buyer not my buyer to be married to the home
Sep 04, 2007 05:35 PM
Mana Tulberg
805 County Real Estate - Camarillo, CA
Real Estate Agent - Camarillo CA
Thesa, Yep, unfortunately there are some people who do marry their home.
Sep 04, 2007 06:17 PM
Stephanie Edwards-Musa
thredUP.com - The Woodlands, TX
knitwit at thred UP
Mana, these are great tips for homebuyers, especially those in Ventura County.  It is always best to know what they are up against.  Great post!
Sep 05, 2007 07:18 AM
Stephanie Edwards-Musa
thredUP.com - The Woodlands, TX
knitwit at thred UP
Mana, these are great tips for homebuyers, especially those in Ventura County.  It is always best to know what they are up against.  Great post!
Sep 05, 2007 07:19 AM
Mana Tulberg
805 County Real Estate - Camarillo, CA
Real Estate Agent - Camarillo CA
Stephanie, Thank you, I think we all need to do our homework before we purchase anything especially a home.
Sep 05, 2007 08:07 AM
Paula Henry
Home to Indy Team @ HomeSmart Realty Group - Avon, IN
Realtor - Indianapolis Real Estate - 317-605-4174
Mana - I do not take buyers out unless they are pre-qualified and I know something about theri lender and program. I can not tell you the amount of times I have saved my client money just by knowing what their program will allow.
Sep 05, 2007 03:27 PM
Mana Tulberg
805 County Real Estate - Camarillo, CA
Real Estate Agent - Camarillo CA
Paula, That's because you are a great and wise realtor.
Sep 06, 2007 03:09 AM
Lisa Heindel
Crescent City Living LLC - New Orleans, LA
New Orleans Real Estate Broker
Mana, now if we could just get the general public to understand this fully, we'd have it made.  I got a call today from a potential buyer I talked to awhile back and referred to a lender...he still hasn't gotten pre-qualified.  Once again, please contact your lender before we go look at any homes...
Sep 06, 2007 05:50 AM
Leah Ross
Your Tampa Bay Mortgage Source - Tampa, FL
Tampa, Florida Mortgage

Amen Mana......amen!  Great information out there!

Sep 06, 2007 06:51 AM
"The Lovely Wife" The One And Only TLW.
President-Tutas Towne Realty, Inc. - Kissimmee, FL

Mana...

Well. You know me...No pre-qual...No Me :)

Not having a pre-qual means you may find yourself working for free. Not me man. I'm expensive. Ask Blog Boy :)

TLW...ROAR!

Sep 06, 2007 07:22 AM
Esko Kiuru
Bethesda, MD

Mana,

Well put. Every home buyer should read this post and take it seriously. He is probably signing up for the largest debt in his life and with it comes a large responsibility. Namely, paying the loan back. As the current real estate market has shown us, you can't count on home values constantly rising. So prepare your budget for all possibilities.

Sep 06, 2007 07:28 AM
Colleen Irwin
Retired - Irondequoit, NY
Creative Real Estate Solutions...
Vote for this post on my possible posts to feature today!  Vote for it here!
Sep 06, 2007 07:34 AM
Stacy Magid
Century 21 New Millennium - Woodbridge, VA
I never take a buyer out without a PRE-APPROVAL Letter.  If they don't have one I call one of my preferred lenders and get them approved on the spot.  Not worth my time or the buyers time if they aren't approved for the house they are looking at.
Sep 06, 2007 07:40 AM
Mana Tulberg
805 County Real Estate - Camarillo, CA
Real Estate Agent - Camarillo CA

Lisa, I have a few of those people who call me, want to go see a house, when I ask them if they have talked to a lender, they say no, I put them in touch with my lender, but they don't answer his calls!!!! 

Leah, I can't help them unless the buyers come and see you guys first.

TLW, OH, I know you are smarter than that :)

Esko, Thank you. A house is one of the largest financial commitment that can break up family commitments and etc. it should be taken very seriously.

Colleen, Thank you, I am very grateful.

Stacy, You are a great realtor for doing that.

 

 

Sep 06, 2007 08:20 AM
Dan Norton
Sand Dollar Realty & Sand Dollar Referrals - Orlando, FL

Very good post, and very true.  It's like the way people love to win a contest, but don't want to take the time to put in an application.  Buying a house is so much sexier than 'getting pre-approved for a loan'.  :)

Unfortunately, so many people treat the loan-approval-then-buying-a-home process like getting a credit card with a limit, then running straight out and charging it to the max, even though they didn't Have To.  Now that money is tighter, I think we've already seen more discipline from buyers ...although it's likely because they're not looking at their purchase as a get-rich-quick scheme like before.

Sep 08, 2007 07:27 AM
Mana Tulberg
805 County Real Estate - Camarillo, CA
Real Estate Agent - Camarillo CA
Dan, You are so right. Buyers are just starting to look at home buying seriously again.
Sep 08, 2007 05:03 PM
Adele Irving - Easton Area Homes
Prudential Patt, White Real Estate - Easton, PA

I just started BRO in Reston in August.  I had my last settlement the end of August.  I have nothing on the Horizon.  I've been doing what my coach suggests, reconnect letters, letter from the heart, RiverOaks postcard, newsletter etc. Unfortunately, I can't do ugly yellow signs, zoning and my broker won't allow it.

 

I was  toying with taking clients out if they didn't have a preapproval, but you gave me the resolve to stick to my guns.  I read many of your posts.  They are very informative. Do you or anyone else have an idea of what more I can do to get some business.

 

Thanks, again.

Sep 10, 2007 02:21 PM