Smart Buyers are prepared
There are many things you can do to help your offer stand out against the competition. Below are four important home buying tips to have in mind before you start the home buying process.
1.) Most crucial is the lender pre-approval letter. Having a written pre-approval letter shows the seller that you have given your financial documentation to the mortgage professional. A seller will know that you are qualified and ready to buy for the price you are offering. You want to obtain this approval before your start home shopping. A pre-qualification letter is not the same, nor is thinking that you can afford something based on your own math. Mortgage professionals evaluate your debt to income ratio. They look at all factors when evaluating your loan limits for a home purchase. Your offer will be stronger with a pre-approval letter.
2.) Beware of online or discount lenders. It is important to work with a local mortgage professional who knows the rules and regulations of your State. Your real estate agent can refer you to lenders that provide good service, and close in a timely manner. Many online lenders offer low “teaser rates” in order to earn your business, however, those low rates often don’t apply. Additionally, many online brokerages depend on high volume, so you may get a representative who is less experienced. Lastly, with online lenders, there are many parties working on one loan, so there can be a disconnect in customer service. There is more risk if you choose an online or discount lender
Patient and Responsive Buyers Prosper
3.) Don’t make large purchases during the home buying process. It can be very exciting preparing for your new home, but it is important to hold off on buying major appliances, furniture or that new car. You can put your home purchase at risk with even the slightest financial change at any point during the escrow process. Run everything by your loan officer. It is best to delay any purchases or new debt until after escrow closes.
4.) Be open and responsive to your mortgage professional. When you are working on deadlines, good connection and communication with your lender is crucial. Inform your loan officer of everything up front and any new information as it comes. If asked to provide additional documentation, do it immediately. They are working on your behalf and need to know all your details in order to structure the loan and rates that are best for your situation. A successfully home purchase is a team effort between you, your real estate agent and the loan officer. Contact me today, Marcie Sands at 760-644-1562 if you would like more assistance with your San Diego area home purchase.