One of my Realtor friends asked me to post this article to help people gain a better understanding of how to purchase a home and facilitate a more efficient process for everyone involved. As a residential sales associate for many years, my friend has personally witnessed many situations in which a lack of knowledge about the purchase process exerted a range of negative consequences.
Oftentimes a person embarking on a search for a new home is motivated by a new listing that has recently hit the market. The process typically begins with a person falling in love with a particular home. After viewing the pictures, reading about the home, and in many cases driving by the place on numerous occasions, they call a Realtor and schedule a time to see the property.
It’s an incredibly exciting time and an emotional roller coaster for everyone, especially first-time buyers and home owners who are looking for their dream home. Unfortunately, the excitement and hopes are sometimes dashed on the pavement Humpty-Dumpty style after speaking with a mortgage broker and figuring out a budget.
To avoid this terrible outcome, any person who is interested in purchasing a home should contact a mortgage broker before they speak with a Realtor. No matter what the state of a person’s finances may be, the focus of the conversation should be on the acquisition of a letter of preapproval.
Obtaining a letter of preapproval from a mortgage broker can provide a wealth of insight into the search process and minimize inconveniences. The necessary steps to get preapproved can be completed electronically, so the idea that it’s a time consuming ordeal is a misconception.
This is not to be confused with a note of prequalification, which really only amounts to a lot of meaningless talk. Instead, a note of preapproval is worth its weight because the diligence that has to be performed has already been done.
Being preapproved is particularly vital in a hot market. With homes selling fast and many sellers experiencing multiple-offer situations, a letter of preapproval is essential. After all, if you were selling your home and weighing two offers, which would you choose, the offer from a wildcard buyer with many uncertainties or the offer from an informed consumer who is preapproved for the asking price?
A mistake that many home owners make when looking for a new place is that they fail to ask some critical questions, such as whether or not they will sell their home, rent it out or make an offer on a new home contingent on the sale of their existing property. The answers to these questions can have a drastic impact on a person’s buying power.
Going into a home search with an accurate idea on pricing will save a tremendous amount of time. To obtain a note of preapproval, please contact me. I enjoy helping people achieve their goals in the most efficient way possible.
Patrick Stoy has 16 years of mortgage lending experience. Patrick is CEO of Wilmington-based Market Consulting Mortgage, which he started in 2005 with a mission to build lifelong customer relationships by providing real value. To learn more about Marketing Consulting Mortgage, visit www.macmtg.com. Patrick can be reached at [email protected] or (910) 509-7105.