One Key Tip for First Time Home Buyers
One of the most important tips for first time home buyers is that it’s critical to find a mortgage lender and get pre-approved before you start looking for a home. It may sound backward at first glance, but take it from us, it makes a lot of sense. Here’s why:
- It sets expectations: Getting pre-approved for a mortgage will let you know how much you can afford to spend on your dream home. This makes your house hunting easier because you’ll know the price range you can afford.
- Sellers will be more interested: When a seller sees that you are pre-approved for a mortgage, they will be much more interested in talking to you rather than to house hunters who aren’t.
- Time savings: Let’s face it, securing a mortgage requires a lot of paperwork. The sooner you start, the faster you will be able to finish, go to closing and enjoy your new home.
Many potential homeowners ignore the benefits of getting pre-approved and end up frustrated and disillusioned. This is because they think they know how much they can afford, but don’t take into account many different factors that can radically alter the price of owning a home, such as:
- Market competition: a bidding war could erupt for the home you want at any time. You may think you can afford to make a big offer on a home, but without obtaining a pre-approval and setting a realistic budget you’re operating in the dark.
- Down payments and closing costs: Without speaking to a mortgage banker and securing a mortgage pre-approval, you will have no idea how much it will truly cost to purchase the home you are interested in. Closing costs and minimum down payment amounts can be shocking if you aren’t prepared.
We hope that any first time home buyers reading this will find a trustworthy mortgage banker who can help you get pre-approved for a mortgage, so you know your facts and have a smooth home buying experience!