Friday’s Five – A Homebuyer’s Golden Ticket

So, remember when Charlie found the Golden Ticket that won him a trip to the Chocolate Factory?  A homebuyer’s golden ticket is the preapproval letter.

Prior to starting your search for your new home, it is important to understand the money required to purchase.  Meeting with a qualified lender is the first step.  A mortgage lender can explain the different mortgage options, down payment requirements and/or assistance as well as closing costs. In short, they will provide you with a “good faith estimate“ of the out-of-pocket expenses needed as well as your monthly mortgage payments.

Once you are educated, here are the five additional benefits of being preapproved as the home search begins:

1. You know your Niche. You will be able to know what homes you can and cannot afford.  If you are like me, I have champagne taste and a beer pocketbook.  Being preapproved will keep you looking only at houses within your budget.
2. No Surprises: Pre-approval uncovers any credit or financial issues early on. If there are any, you can work on fixing them before making an offer.
3. Stronger Negotiation: Sellers take you more seriously if you’re pre-approved. It shows you’re a serious buyer and can close the deal without hiccups.
4. Time Saver: Since your financials are already reviewed, the loan process speeds up once you find “the one”. Quicker closing means less stress.
5. Confidence Boost: You can house hunt confidently, knowing you’re ready to make an offer as soon as you find the perfect place.

Don’t have Lender?  Real Estate Agents are great resources for well-qualified mortgage professionals.  Working with a Lender with whom your Agent has a relationship makes the three of you  well-oiled Factory machine.