Let’s face it, buying a home is a big deal. In fact, it is usually the biggest actual financial deal you will make in your life! It is complex for sure, and your time and energy get taken up with real estate agents and lenders for an intense and concentrated duration of time. How do you know when it is time to talk with a mortgage professional? That can vary depending on your situation, but essentially, a mortgage lender is available to help at any stage of the home buying process. Their experience can help take some of the pressure off by letting you know what to expect. Here are some guidelines for seeking help from a lender.
When Is the Right Time?
Timing and knowing when you are ready to buy is usually the most difficult question for a first-time home buyer; it can be overwhelming for many reasons. One thing to avoid – finding the perfect house first! You may not be able to afford what you fall in love with and that will be frustrating. If your financing is not in order, other buyers could swoop in and buy it from under you.
Work with a mortgage professional to determine how much you are able to borrow. This will help you limit your home search to those in your price range. Getting pre-approved by a lender means you will know exactly what you can afford. And, lenders will also generate a pre-approval letter that you can hand to a real estate agent.
More and more realtors will not even consider an offer from a client without a certified pre-approval letter from a lender.
Related Read: Why Get Pre-Approved for Your Mortgage?
5 Reasons to Talk to a Mortgage Lender Before You Find a Home
Home buying is an intense process and mortgage lenders hold the keys to your ability to close on your home. They will guide you through the entire process, so the earlier you involve them, the smoother your home-buying process will be. These are reasons to talk to a mortgage professional:
- You will know what you can afford.
- You can shop around for a certain amount of time without damaging your credit.
- Sellers are attracted to buyers who have the backing of a lender.
- The process and paperwork can take some time, so starting early is key.
- You will know what your closing costs will be ahead of time.
According to The Balance, it is sometimes better for first-time buyers to choose a real estate agent before their lender because the agent will be able to recommend lenders to clients. This is particularly useful if you are looking for homes in an area different from where you currently live and do not know anyone.
Related Read: How to Choose a Realtor
Knowing What Your Lender Requires
If you are new to the home-buying process and unsure if you will be able to secure a home loan, you may want to confer with a lender first. Once you select a mortgage lender, find out what they need from you to get approved for a loan. You may need some time to attain what they require. Do you have the required down payment together? Will you need to increase your income? Do you need to pay down credit cards and other debts first? Will you need to sell assets to raise your down payment? If you answered yes to any of these questions – it could take time to achieve your, and your lender’s, goals. A mortgage professional will guide you through it all.
Related Read: Tips for First Time Home Buyers