Ready to take advantage of the historically low interest rates? Instincts telling you that home prices are at or near the bottom? Maybe it’s time to move to bigger digs. Whether you want a home in Folsom, El Dorado Hills, Anatolia or any where in the Sacramento region your first move should be to get pre-approved for a home loan BEFORE you start visiting homes.
Being pre-approved first can make the home search experience easier and more exciting. Here’s why;
1. Financial Condition
Derogatory credits frequently remain on a credit report long after they should have been removed. Occasionally surprises appear that no one knew about. A Loan Officer can review a credit history, identify problems and offer guidance on how to repair credit should it be necessary. Sometimes it can take as much as three to six months to clean things up. Knowing this can help a Buyer plan their home buying strategy.
2. Purchase Power
A Loan Officer will help you determine a price range and a monthly loan payment that you are comfortable with. Banks will lend a borrower a lot of money. That doesn’t necessarily mean it’s the best thing for borrower. Your loan payment shouldn’t keep you awake at night.
3. Loan Options
A Loan officer can discuss the various loan options you have and help you choose the one that best fits your income, your household, and your financial abilities.
4. Home Heart Break
Possibly the most heart breaking thing a Buyer can do is to get excited, start looking at homes before they get pre-approved, fall in love with only to discover afterwards it’s out of their price range.
A last thought or two… Real estate professionals work together closely on your behalf and they often have to move quickly. Provide each with the others contact information right way so they can do their best work for you. Also, it’s always a good idea to use a local lender that’s familiar with the Sacramento market and easy to be in touch with. That’s huge when the process speeds up and things need to happen quickly.
Pre-approval helps lay the foundation for a smooth, exciting, and memorable home buying experience! Start there first!