With the latest talk about social distancing, you may be wondering if it’s a good idea to meet with a lender or buy a house. We have good—no, great news! Interest rates are incredibly low, and most lenders are perfectly capable of prequalifying without having to meet face to face. You can get prequalified via a quick phone call, an application online, or one of several other methods. A few minutes of conversation can provide the necessary information to get an idea of what you can afford.
Contrary to what you may believe, it’s very important to get prequalified before seeing homes. First things first, call us to set up a buyer consult. We’ll go over the whole process so you have any necessary information to start interviewing lenders. For instance, you’ll have a better idea of what questions to ask your prospective loan officer when you speak to them.
After finding a lender that is the best fit for you, there are two important things to do:
1. Find out what the absolute highest purchase price is that you can afford. The goal is NOT to max out your budget, but to know how we can adjust your search if needed.
2. Determine what purchase price will give you a monthly payment you are comfortable with. This is the figure we’ll use when setting up your initial home search. This is the goal, and where we want you to land price-wise. But, knowing that you can go higher if needed is helpful. Then, if you realize the type of home you want is not available in your comfort range, we can adjust. Similarly, you may run into a situation where a home you love is at the top of that range. As a result, you may need to go slightly higher with your offer because of a competitive situation.
This information is critical to setting up your home search. It prevents wasted time looking at homes you can’t afford. But it’s also necessary to be taken seriously as a buyer. For instance, some sellers do not allow showings for buyers who aren’t prequalified. In a time where we are a bit more cautious about opening our homes to people unnecessarily, it only makes sense that they wouldn’t want to take the time to allow a buyer who isn’t serious about their home search. Knowing you can get a loan and how much you qualify for goes a long way to prove your commitment.
Another benefit is that it prepares you to make an offer quickly when finding the right house. Sometimes, mere hours can make the difference between getting an accepted offer or losing the home of your dreams. Know your situation in advance to put yourself in the best spot possible.
If you aren’t sure where to get started or need some recommendations, get in touch with us today! At Crane Realty, we work with local banks and mortgage brokers and can explain the pros and cons of each. We also have a list of professionals to help you start even before setting up a buyer consultation.