November 9th, 2011 11:51 PM by Dave Gubler
What are the 6 keys effective home buyers utilize to make their home purchase wisely and without life-threatening stress? Are you an effective home buyer (someone who finds the home they want and gets through the often arduous home buying process without killing themselves, their loved ones, the seller, or their real estate agent)?
You can’t effectively search for homes if you don’t know how much home you can afford; or if you can qualify for a home loan at all! It used to be all you had to do was fog up a mirror and bam; 100% financing on a pick a payment mortgage timebomb! I jest, a bit, but in today’s tighter lending environment it is crucial to know BEFORE you begin a home search what type of mortgage, and how much of a mortgage you can or should get. To consider your offer virtually all sellers in California will require a loan pre-qualification or preapproval. The vast majority of sellers are going to want to see some evidence that you can get a loan for the home. Multiple offers are becoming common again (especially on the desirable well-priced homes). Why would you want to relegate your offer to the bottom of the pile because you didn’t bother to submit a pre-qual form?
It is crucial to work with a good lender throughout the home buying process. If you don’t know a lender, ask your agent for a few recommendations. Interview a couple of lenders, then pick one and stick with them. Few things add more stress and headache (for you!) to a real estate sales transaction than changing lenders mid-stream. Find a lender that won’t just tell you the maximum amount of a mortgage you can get. Rather, find one that a pro that understands that qualifying for a certain amount and being able to make the payments are two different things.
Keep an eye out for the next installment of The 6 Keys To Effective Home Buying...
Key #2: Define Your Criteria (Must Haves & Like To Haves)