Speaking With a Local Lender is Crucial Before Searching for Homes
Are you looking to buy a home? Many buyers are so excited to search for the perfect home that they don’t bother talking to a lender until they’ve already found it. In my opinion, this isn’t a good idea and could jeopardize your purchase. Here are a few problems with waiting to speak with a lender:
1. A prepared buyer could beat you to the punch. Let’s say you find your perfect dream home at a great price. You finally talk to a lender, but while you’re getting your finances in order, a pre-approved buyer has their offer accepted. A lot of houses are selling quickly in this market. You should be ready to make an offer as quickly as possible when you find the right home.
“Your lender can help you increase your credit score and lower your interest rate.”
2. A lender can help you organize your finances. Do you need to pay off a few debts to qualify for a better loan? Your lender can help you with that. Your lender can also help you increase your credit score, which can improve your risk profile and lower your interest rate. Over the course of a mortgage, this can save you thousands of dollars.
3. A lender will help you find what you can afford. In my experience, many buyers don’t know what they can truly afford. I’ve had clients fall in love with a $600,000 home only to find they’re pre-approved for just $550,000. Knowing your budget upfront will save you plenty of time and heartache while searching for a property.
As soon as you decide to buy a house, talk to a local lender. I work with fantastic lenders on a daily basis, so call or email me if you need a recommendation. I look forward to hearing from you!