We've all had clients that wanted to jump right into properties before talking with a bank. They go online to a site that asks a few questions, they answer in a manner that they believe gives them a good light and come away with a value.
Or they have a pre-conceived idea of how much they feel they can spend per month and look for homes they believe will be right for them.
When they find the house they want, and sit with the bank, which has to be done, the reality of their value is exposed and they are very much disappointed because the overtime they presume is valuable is disallowed and the extra money from their friend or spouse cannot be used as they will not be on the mortgage.
Getting pre-qualified first is not being mean, it is being realistic, which is always the best way to start a transaction.
This post by Sally Cheeseman, tells it from a different perspective but the story is the same.
"Why Can't You Show Me Properties Before I'm Preapproved for a Loan?"
I have had at least a third of my ‘potential' clients ask me this question and to tell you the truth it's a very valid question for the first time home buyer. The excitement of making that first initial decision to purchase a home was their first step and then they immediately want to go out looking at that dream home with four bedrooms and a perimeter lot with a ‘to die for' view of the ocean.
It's 1.5 million dollars.
What is your desired monthly mortgage payment? In other words, are you comfortable with paying XXX per month for that dream home? The first time home buyer will usually have an amount in mind that is one third the payment per month for that million dollar home.
Speak to a Hawaii Local Lender who will gather all your information (income, credit, debt etc.) so they can conclude what price range you are qualified for and are comfortable with for that monthly mortgage payment. The loan officer will also give you options for loan programs that will suit your needs.
Getting preapproved will also save time and heartache. How? Knowing what price range you're approved for will keep you in a realistic frame of mind in searching for that dream home. There is no sense looking at million dollar homes when you are qualified for a half a million dollar home. We make appointments and look at your selected price range of homes (or condos/townhouses) so we aren't spinning our wheels and wasting time.
No broken hearts over a "to die for home"
........ that you can't afford.
Celeste "Sally" Cheeseman is a Realtor-Associate with Century 21 Liberty Homes in Mililani, Hawaii. With a sharp understanding that a listening ear is the key to a client's needs she serves the island of Oahu (Honolulu County) and all Hawaii Military Relocating to Hawaii, Hawaii Retirees, Hawaii Job Transfers and Hawaii Residents. Website: www.hawaiihomesmarket.com