Pre Approval first!

By
Real Estate Agent with Keller Williams

As scary as it is and as much as I hate to say it... Step One is the money stuff.  I remember when I started looking for my first home I would sit in front of online searches for hours and hours.  Slowly but surely the price range I was looking at started going up and up.  Before I knew it, I was looking at homes with mortgage payments more than I was making in one month!

dollar signMoral of the story... GET PRE-APPROVED.  These lenders know better than anyone how much you can affordIt is better that you know now and not later what you can spend when you look for your first home.  It will save you some heartache later.  In fact, a smart real estate agent in Olathe or any other area, probably won't even starting looking at homes with you until you get pre approved. 

Not to mention that a lot of those "online mortgage calculators" can be deceiving.  A lot of the time they don't factor in the mortgage insurance (if you have to have it), the homeowners insurance or the taxes and interest. 

So, you may be asking yourself, "How do I get pre-approved?"  Good question.  I would recommend that you gather up paycheck stubs from the past year as well as bank statements, and ask around for a good lender.  In my humble opinion, it is better to go local.  Ask your family and friends who they have used or check out Marti's website under Vendors.  Each one of those people are people we have personally worked with and think do a wonderful job working with first time home buyers

Still not feeling confident?  Check out this website about the different stages of pre-approval and then call me!

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Rainer
116,014
Michael Thompson
CENTURY 21 Anderson Properties, Inc. - Anderson, SC
MBA

I agree every buyer should get pre-approved before beginning to look at house. However, this is not a cure all for buyers with financial problems.

I remember in particular a situation in which I was the listing agent and was presented an offer with a pre-approval letter which was accepted by the seller. Three days before closing the selling agent calls me to say her buyer's loan was rejected by the lender.

We re-scheduled the closing about five times afterwards before the seller had finally had enough. Not only did I lose the sale I lost the listing also.

http://www.michaelthompsonproperties.com

 

Apr 26, 2007 05:58 AM #1
Rainmaker
114,255
Chris Lengquist
Ad Astra Realty - Olathe, KS
Kansas City Real Estate Investing
Pre-approvals are nice.  In this market and loan environment a pre-qualification is better.  Good post Layna.  You are definitely getting the hang of it!
Apr 26, 2007 09:26 AM #2
Ambassador
2,491,688
Fred Griffin Tallahassee Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

We invite you back to ActiveRain in 2017.

  Much has changed since your last blog post.

  Best to you!

Jul 11, 2017 06:40 PM #3
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Rainer
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Layna Lambert

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