Reasons to Talk With a Lender Before Searching for Homes

Buying a home… especially your first home, can be an exciting and stressful experience! One of the most important aspects of home ownership is often neglected-finding the right lender and mortgage. The reality of house hunting, is that most people don’t see a lender before starting their home search. Seeing a lender should actually be the very first step you take as a potential home buyer. AND, there are multiple reasons why.

Your mortgage actually allows you to purchase the home. Without doing proper research on both a lender and the mortgage, you may not be getting the best deal you can. Furthermore, knowing what you can AFFORD versus what you THINK you can afford is a big difference. Finding this out first, will give you a more realistic picture of what you can afford.

Why is talking to a lender first important?

1. You set realistic expectations-

Can you even afford the dream house you just found? Getting an online quote is actually much different than being pre-approved with a lender. Some realtors may even require a pre-approval letter before they will show you homes. Most of the time, experienced realtors do.

2. Look better in the seller’s eyes-

When you have pre-approval from a lender, it proves that you are a serious and qualified buyer. Also, when you have this pre-approval letter prior to searching for homes, you can get your offer in sooner. Furthermore, there is less hassle for all parties, and it helps the process be free from other complications. Sellers like pre-qualified buyers!

3. There may be other costs involved-

Your closing costs can be greater than the official down payment. Often times, there are lender fees, mortgage insurance, title insurance and other costs. The seller usually steps in and helps pay some of the closing costs, but it is nice to verify with a loan officer what other fees you may run into. You need to know you have both the down payment and the other closing costs in your bank before purchasing a home.

4. Completing paperwork takes time-

In the real estate process as a whole, there is a lot of paperwork. Completing the loan also requires a lot of paperwork. You need to explain where your money comes from, and this process can take time. You want to have this all done before it comes time to close. It will help reduce stress, and the likelihood that the seller pulls out of the deal due to mortgage complications.

MEET OUR FEATURED AND TRUSTED LENDER! 

Our Featured Lending Specialist:

John Roehrich
651-748-3706
joehrich@homesmortgage.net

We’ve worked with John for many years, and if you are looking for a Minnesota Lending Professional, he would be a great place to start. He is also licensed in Wisconsin. John strives to form lasting relationships with all of his clients and always provides excellent service for smooth and successful closings.

If you have any real estate questions regarding the buying or selling process, please feel free to contact our team at 651-269-3487 or Sandy@SandyErickson.com

Sandy Erickson Team of Keller Williams Realty

 

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