Most Buyers are so focused on the plans to search for their perfect home, that they miss the first step entirely. Go to a Lender. I know, you may be an experienced homeowner and homebuyer…but you need to start with a Lender.
Meeting with a Lender (or multiple Lenders to find the best option for you) will put you in a position of power when it comes time to negotiate and buy. Your Lender can go over your credit history and give you advice on how to handle any issues that may be on it. Lenders can pre-approve you for a home you can afford, and give you knowledge and firm numbers that allow you to negotiate a sale swiftly and with confidence…which is very attractive to Sellers!
When pre-approved, you will know:
1. The maximum price you can afford, allowing you to make a firm offer.
2. How much money you have for down payment and closing costs.
3. If you’ll have to negotiate who will pay for closing costs.
4. You have resolved any credit issues, and you have been pre-approved for the loan. This is very attractive to Sellers!
5. The paperwork was submitted and processed already, no lengthy waits or crossed fingers while the bank evaluates you…that’s already been done!
6. How long it will take for final approval of your loan.
Once you have been pre-approved, you know what you can afford, what you can offer, and what you need to negotiate from the Seller. You are armed with facts, and ready to buy a home. Now comes the fun part, shopping for your dream home!