I often get calls or emails from prospects (potential clients) asking me to see a home. My first question is always …”Have you had a chance to talk to a mortgage consultant to see what your buying power is?” The response I usually get is “no, I just want to see a house” or “I don’t have time for that” That leads me to todays conversation. Do you know what your buying power is when you are ready to purchase real estate? Here is the reason I ask…
- I would like you to know what price range you should be looking. If you are looking at homes that you think you can afford and later find out that you cannot, you will have a very hard time getting a higher priced home out of your head and will lead to you having issues with every house you see after that. The homes will never meet your expectations.
- You may not qualify at this time. Why spend time looking for something that your cannot afford? Know if your can get pre-qualified/pre-approved so you can have a more strategic approach in your search.
- You may be able to afford more home then you are currently looking for. A $175,000 home is a lot different from a $100,000 home.
- You need to be pre-qualified/pre-approved to put in or register an offer. Most listing agents will not accept an offer unless it is accompanied by a pre-qualification letter.
- This also lets the agent know that he/she is not wasting their time on someone who is not in a position to buy now when they have clients who are. Agents only get paid when a deal closes. Its also not fair to the sellers to move around their schedule and let you into their property when you are not in a position to buy.
- If you cannot afford to buy right now, a mortgage consultant can help put you on a path. You may just need a little work to improve your credit and get your finances in order. A mortgage consultant could help set you on a path to correct them and give you your quickest return.
- A good mortgage consultant will walk you through the process and give you the hard truths about what you will need to bring to the closing table. He/she will explain what kinds of loans are available to you and explain what happens throughout the process.
- Now is a great time to buy. Interest rates are still at record lows and the forecast indicates that they will be moving up throughout this year. With rates this low, your affordability is greater then it will be later.
- Get it done before the spring market hits. Knowing your buying power will help you get ready when more inventory of homes will be available this spring.
- Now there is less competition. Winter brings fewer buyers. This way if you find a home now, you may not be in a multiple offer situation come spring when there are many buyers trying to buy the same property.
Having a great Realtor help too. He/she will be able to guide to you make the right financial decision and arm you with the tools to succeed If you want more information and need help visit my website and I would be glad to help you.