Ready, Willing & Able ~ To Find Your Calm!8/4/2017
You’ve made your list of must haves for your dream home, but how do you turn that into a reality? Financing the dream can seem daunting. However, to truly find your calm, you must make sure you’re prepared financially. Many of my buyers have been millennials, and for them the first-time home buying experience is full of questions on how to take the next steps, and if they can afford it. For my other buyers, they are looking to move up, and suddenly the what if’s of a higher mortgage and added cost can throw that dream into a nightmare if not prepared as well.
The first step I recommend for my clients even before you look at any home is to obtain pre-approval. It is not only absolutely necessary to present a solid competitive offer in this seller’s market, but it is key to making sure that my clients are well informed on what they can afford, and how to be sure their must haves are truly within their reach. It is what makes you "ready, willing and able" in real estate terminology and law, as legally capable and financially able to consummate the deal. It is a vital part of the legal and successful action needed to set you apart as viable.
Pre-approval is a much different process than pre-qualified. It is a deeper look and better prepares you to make your strongest offer. While getting pre-qualified will give you a general sense of where you are at a high view and perhaps a range of a mortgage amount you may be eligible for, it is not a guarantee and it does not dive deep into the actuals that could influence and impact your ability to purchase. Being a pre-qualified buyer doesn't carry the same weight as being a pre-approved buyer who has been more thoroughly investigated.
Getting pre-approved is the important step then to realizing your dream, and it tends to be much more involved, and will then supply the lender with the necessary documentation to perform an extensive check on your financial background and current credit rating (Typically at this stage, you will not have found a house yet). From this information, the lender can tell you the specific mortgage amount for which you are approved. You'll also have a better idea of the interest rate you will be charged on the loan and various loan options you would be eligible for. With pre-approval, you will receive a conditional commitment in writing for an exact loan amount, allowing you to look for a home at or below that price level. Obviously, this puts you at an advantage when dealing with a potential seller, as he or she will know you're one step closer to obtaining an actual mortgage.
The other advantage of completing this step of pre-approval, before you start to look for a home is that you'll know in advance how much you can afford. This way, you don't waste time with guessing or looking at properties that are beyond your means. You will know areas of concern that you need to examine and “clean-up” to ensure that your profile is solid and ready.
Getting pre-approved for a mortgage also enables you to move quickly when you find the perfect place. When you make an offer, it won't be contingent on obtaining financing, which can save you valuable time. In a competitive market, this lets the seller know that your offer is serious – and could prevent you from losing the home to another potential buyer who already has financing arranged.
I want my clients to be ready, willing, and able buyers, and to have solid options in lenders that I have vetted and trust to give them sound advice and outstanding customer service. The differences in finding a lender who your agent can trust to help you, can make the difference in getting to the closing table successfully, and getting there on time. Time, that can save you money, peace of mind, and give you confidence that you are solidly positioned to own this home. This confidence will not only make you a prepared buyer, but will ultimately make you a satisfied owner/investor.
When it comes to lenders, there are those who may offer teaser rates or seemingly have lower cost on their fees, however, vet carefully, as there is a price to be paid for a delayed closing, or the stress of poor communication when you are preparing to close. A solid lender should be willing to show you the price differences, and point out where they can match prices, or provide better advantages in outstanding customer service, and that is even more priceless in this competitive market. As a Realtor, I strive to provide the best information, as well as strongest lender recommendations to my clients. I want to provide my client with lenders who I have vetted, and have established successful transactions with, and know that they will provide the utmost care to my clients. I want my clients to have the full confidence that they can save time, money, and are educated buyers in this current market in order to realize their dreams. My goal for my clients, and for you, is to “passionately help you with your biggest investment as if it were my own”. I am committed to helping prepare my clients to spend less, gain more and realize their dreams in buying or selling their home.
As Ralph Waldo Emerson so wisely stated, “The future belongs to those who prepare for it.” …For those who prepare, it puts them one step closer to realizing their dreams and finding their calm.
So, what is stopping you from preparing now for your future and finding your calm…