2 Steps Every Buyer Must Take in an Active Market

2 Steps Every Buyer Must Take in an Active Market

In todays active real estate marketplace, there are 2 big steps buyers need to take before shopping for a home. I see too many people skip these steps, only to miss out on their dream house. Make sure you take these easy but crucial steps the next time you want to buy a new home.

Step 1 – Get pre-approved with a lender 

Yes, this sounds simple, and for many of us it is. But, even if you know you have all the qualifications to get pre-approved, the process is still important. When you get pre-approved, your lender will look at 3 major areas: credit, income, and assets. This normally entails gathering tax returns, pays stubs, bank statements, investment paperwork, etc. A lot of times, just gathering this information can cause a considerable delay in financing which is one of the reasons to start this process early.

Credit is the biggest issue when getting pre-approved. There are a lot of factors that contribute to your credit score. Credit scores will not only determine whether or not you get approved, but will also determine what your rate and terms will be. When you go through the pre-approval process with a good lender, you will know what your credit score is at the onset; and what you can do to improve and protect that score throughout the home buying process. It's never too early to check your credit.

Step 2 – Arm your Realtor

When a Realtor is engaged by you to find your next home, you want to make sure he or she has all the information possible to focus your search and make an offer. A pre-approval letter backed by a reputable lender is critical when making an offer, especially in an active, competitive marketplace.

A good lender will only provide a pre-approval letter after careful study of your application information and supporting documentation. By having both your application and supporting documentation reviewed prior to an offer being made, surprises and delays are more likely to be avoided. And, your Realtor is able to make a strong case for your offer in an active market.

As always, I appreciate your referrals and am available to answer any questions about home financing you or your friends may have.