Triangle Property Lines: Six Steps to Buying a Home

SIX STEPS TO BUYING A HOME in APEX, CARY, HOLLY SPRINGS, FUQUAY-FARINA, RALEIGH or anywhere in the TRIANGLE NC area

STEP TWO - PREPARATION

Though it may feel backwards, it is wise to shop for a mortgage before shopping for a house. Actually, it is not only wise, but a letter of qualification is now required in our local real estate market to place an offer on a home.

You must be able to determine how much you can borrow, and in turn, how much house you can buy. The amount of money you qualify for will depend on several factors including your down payment, credit history and your length of employment. Based on information you provide, your lender can estimate how much money you can borrow before applying for a loan. This non-binding process is called “pre-qualifying”. There is no obligation to use that lender, and there is no cost to you. Don't let this be your answer when asked, "How much home can you comfortably afford?"

I DON'T KNOW

Your lender will also determine your credit worthiness by pulling your credit reports and verifying your credit score. With this information the lender can commit to lending you a specific amount of money, pending property details. The lender will then provide you with a letter stating how much mortgage you qualify for. This process is called “pre-approval”. With a pre-approval letter, you can shop for a home with the confidence of knowing exactly how much you can afford. The pre-approval letter also confirms to sellers that you have the financial ability to complete a purchase. Because pre-approval takes a closer look at your background and includes a credit check, it holds more weight with sellers than pre-qualification.

Your credit score will have a major impact on the entire purchase process, including the rate at which you can borrow money. During this process, it is important to avoid any major purchases and/or lifestyle changes. Too many times I have heard folks who, once they found out how good their credit was, run out and buy a new car, boat, or other item which then brings down their credit score! These banks can be sneaky!

In today’s real estate market, it is not just recommended you get your loan in order first, it is required. Sellers will only respond to offers that are accompanied by a letter of qualification from a recognized lender. And, as homes are selling quickly, we cannot assume that the home will wait for you while you go & and figure out if you can afford that perfect home. If it’s perfect for you, you can bet it will be perfect for others, too.

Step Two may also be to contact your Realtor. I have some fantastic lenders who have been extremely helpful for my clients – here are a few you may want to check out. I recommend you contact more than one as not every lender has the same program. Some may have lower rates but higher closing costs and vice versa. They will help you figure out what plan will work best with your budget.

REQUEST INFORMATION ON RECOMMENDED LENDERS

Did you know that 90% of Americans have some credit issue or ‘ding’ on their report? Here is a company I highly recommend to help you get in financial shape. And, they are not just for folks who have credit problems – they can help you get your credit score up so you may qualify for a better loan package, thus saving many thousands on the lifetime cost of your loan! Again, no cost, no obligation -- can you really resits FREE?

CREDIT SERVICE SPECIALISTS

So, have you completed Step One? Ready for Step Two? Can't wait for Step Three? Get in touch with me today and I'll be happy to help!