So you've decided to buy Real Estate in Maine? Congratulations! Buying a home is always a wise investment! It doesn't matter whether you're a 1st Time Homebuyer or an experienced Investor, there are certain steps you should take to ensure your venture into the Maine Real Estate Market is a successful one! The first step should always be.....get pre-qualified! Listed below are questions I hear frequently from my clients, along with my answers. Hopefully this will clear up any misunderstandings about the pre-qualification process!
1. Why should I get pre-qualified? Ahhh..excellent question! Let me ask you this....would you walk into a car dealership without knowing how much car you could afford? Probably not! More than likely you will know exactly how much you want to spend on a monthly payment. It works the same way with buying a home! The first thing you should do is to sit down with a lender and figure out how much the bank will lend you to buy a home. That will help you determine how the monthly payment will fit into your budget!
2. Who will care if I'm pre-qualified? Everybody! To begin with, your Real Estate Agent will be able to narrow the search parameters down to the homes that fit your needs AND your budget! That way, you don't waste time looking at homes that you would love but your budget wouldn't! Plus, when you fall in love with a home you'll be able to act on it quickly and send your pre-qualification letter along with your offer! It would be terrible to lose out on the house of your dreams while you're waiting for a letter from your lender.
The Sellerwill also care! Sellers will know you're a serious buyer if you've already been pre-qualified! Plus it gives them a sense of security that they can accept your offer without worrying that the deal will fall apart over financing issues. In a multiple offer situation, the fact you are pre-qualified could make a huge difference in the sellers decision. In fact, in todays market, most sellers are requesting a pre-qual letter within 5 days of accepting the offer! So be prepared!
3. Is it hard to get pre-qualified for a mortgage? Not at all! The first thing you need to do is to contact a lender. Look online...talk to your bank...ask a friend...get a list of 3 and compare rates. When you meet with them they will ask you questions concerning your job history, current debt, income, and credit history. They will run the numbers and help you determine how much house you can afford. Generally this can be done in less than an hour!
4. Does getting pre-qualified obligate me to obtain the mortgage? Not at all! If you should decide that it's not the right time for you to buy a home, then you are free to walk away! A pre-qual letter does mean you have to get a mortgage!
5. Does being pre-qualified for a mortgage guarantee that I'll get a loan? Getting pre-qualified is just the first step in the finance process and involves providing the lender with basic information..it does not guarantee that you will get the loan. Once you locate the home you want to buy, the lender will begin an in-depth process that is composed of various steps. The most important thing to remember is that once you've been pre-qualified, don't make any big purchases that will affect your debt-to-income ratio! Don't buy a car, run up your credit cards..etc. That will go a long way in making sure you get final loan approval!
In summary, the first thing you should do is to meet with a lender! Feel free to contact me with any additional questions you may have! Once you're pre-qualified, be sure to check back and find out what to do next! I'm looking forward to helping you buy a home in Maine!
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