Buyers: The FIRST Step in Buying a Home

If you're like most people when you are ready to buy a home, you start driving the neighborhoods you like to see what's available.  And while that is definitely the fun part, the very first thing you should do is simple:

VISIT WITH A LENDER !!!

There are 4 very important things a lender will tell you:

• If you qualify for a loan.
• How much you can afford.
• Help you find mistakes on your credit report that need to be corrected.
• Give you an accurate picture of what your monthly mortgage will be (it WILL be more than just principle and interest)

Pre-qualification Letter

When you have your first meeting with the lender they will give you a pre-qualification letter to submit with your offers.  This is very important, especially if you are putting an offer on a short sale, bank owned, or HUD home.  The banks will all require a pre-qualification letter before looking at your offer.

How To Find A Lender

I can't stress enough how important it is to use a good lender because they can literally make or break a deal.  I had a deal fall apart five days before closing because the lender (chosen by the buyer) over promised what she could do.  Luckily, my preferred lender was happy to help my client out by completing all the paperwork and get it through underwriting in four days.  I know, I still haven't answered the question of how to find a lender.  I just wanted to show how important it is to use a good one.

• Ask friends, neighbors, and family who they used and if they would recommend them.
• If you already have a Realtor ask them who they recommend.
• Talk to a loan officer at your own bank.
• I always tell me clients to try and choose a lender that is close enough to drive to.  That way if there is a problem you can go to a brick and mortar office building to straighten it out.  It also helps support the local economy.

Before making a final decision, meet in person.  See their office.  Since they will be taking care of your loan, building a relationship with your lender is important!