Buying a Home?

You've decided to buy a home and now you want to look at properties.  Stop!  The best way to start is to get a referral to a mortgage lender and get pre-qualified.  The fact is that most sellers won't even look at your offer without a pre-qualification or pre-approval letter unless, of course your plan is to pay all cash.  If you are planning to pay cash, any savy seller will require documentation that you have the funds available in your account.  A common response from a potential buyer when asked if they have been pre-qualified  is "I will get the pre-qualification letter if I find something I like". 

 

The problem with this attitude is that if the perfect house comes up, you probably won't get it.  Most listings that are priced right and show well in a desirable neighborhood are not only selling quickly but are also receiving multiple offers.  No rational seller is going to make an already pre-qualified buyer wait while you go out and get your loan approval.  

 

Most good Realtors will actually require that a buyer get pre-qualified before taking them out and showing them houses.  That is only fair since Realtors only get paid if they sell something.  Why should a Realtor spend countless hours with a buyer unless they are willing to show that they are able to perform? If you do manage to convince a good Realtor to take you out anyway, they probably won't call you first about the best deals that come up.  They will naturally call the other buyers they are working with who have taken this important first step. 

 

With loans as complicated as they are these days, I see the most problems with the high income earners who think they are just fine.  Trust me, an hour spent with a lender, will save you countless hours of hassle and sometimes thousands of dollars as you move forward toward a purchase!

 

Nancy Puder is the broker and owner of Signature Properties, a prestigious real estate sales and management firm in Arroyo Grande, CA.  You may contact her at Nancy@NancyPuder.com or (805)710-2415. Your calls are always welcome!