Letter to New Buyers

 

I love working with you! Love seeing new homes with you and your families, meeting new amazing people from all over the country, and helping them find a place to call home. It's a wonderful process!

 

What's out there? 

Come on? Who are we kidding? Just because they say you have to get pre-approved first (which I do still suggest btw) doesn't mean you are going to do just that. We know all potential buyers are out there on those phones looking at houses the minute the thought of moving entered your mind. Who wouldn't be???

 

Familiarize yourself with what's on the market. Pay attention to how much it's going to cost to purchase a home in your desired area, with all the features you must have in a home.

 

Now that we know (and have several you are dying to see). We need to look into no ones favorite part....finances!

 

 

-Before we move on to finances, I want to add an important side note. If you are a first time home buyer, It's not a bad idea to now go find a local real estate agent. Your buyer's agent can help you every single step of the way. They will still want you to get pre-approved ASAP, but they can help with that too! They have knowledge of reputable lenders, knowledge of acceptable credit scores, types of loans available in your area, what homes qualify for those loans, the list goes on and on.

 

-Real Estate agents want you to get pre-approved straight away in order to protect anyone from wasting their time, and for the agent's safety. Buyer's may not realize that we do not always know who we're meeting. When you're pre-approved, everyone feels much safer and confident in the common goal! Finding you an awesome home! 

 

Do you know your credit score? It's good to at least have an idea what your score is, before you call a mortgage lender. If you know that your credit needs work, that's ok! You should absolutely still take the next step and talk with a mortgage lender. Many of them can help you repair or build credit for a future purchase. Maybe it's not as bad as you thought? Or maybe you have excellent credit!!!! No matter the case, speaking with a or mortgage lender is the next step. 

 

Debt-to-Income

Add up your monthly bills, and your monthly income. Find the percentage of your monthly income that goes straight to bills. This is your debt to income ratio.

Your monthly bill payment amounts decrease the amount you can borrow. The lower your debt to income ratio, the better off you will be to purchase.

 

 

Now that you are knowledgeable about your finances, check the terms the lenders are offering. Be knowledgeable about the rates and loan availabilities in your area. If you are not sure where to star, your real estate agent can often help direct you to mortgage lenders they've had good experiences with. Whether a real estate agent helped with finding a lender, or not, make sure you know all you can about the company you choose, and your loan terms! Your mortgage lender will ask for ALL your financial information. Keep in mind where it all is, and how to access it. They will need pay stubs, bank statements, 401k statements, tax returns, just to name a few. The faster you are able to get them exactly what they need, the sooner your pre-approval (and your closing date) will be! If you have your documentation all-together, many lenders can have you pre-approved the same day.

 

Now that the pesky finance part is out of the way. Yay! Looking for houses! 

 

There's still way more to the home buying process. Make sure to work with a good real estate agent, and they can help make the rest of the process as smooth as possible!