By Kathy Henne
If you’re planning the purchase of your first home, you’re probably experiencing two conflicting emotions — excitement and apprehension. The positive energy from your excitement is an asset in your home search, but the negative energy from you fear of the unknown is a liability you can leave behind once you’re armed with some basic information.
Paramount to buying your first home is understanding how much you can afford. You can start with any number of online financial calculators, and once you’ve established a budgetary picture, take the all-important next step and get pre-approved for your loan with a great local lender.
Pre-approval may sound intimidating, but it’s a great way to find your “comfort zone” and build your purchasing confidence. Your loan officer will interview you and review your financial documentation. They’ll explain all the different types of loan plans and help you decide which one will best fit your needs. You’ll know how much home you can afford and what the payments will be. You would never want to go out and fall in love with a home and then have the heartbreak of not being able to qualify for the loan to purchase it. None of the other homes will ever measure up to that one and the disappointment will be devastating to you. It might make you decide to give up on buying a home and you’ll loose a wonderful opportunity.
Once you have your pre-approval and know that magic number, you can easily weed out homes above your budget, which will save you loads of time (and disappointment) during your home search. Then once you’ve found a home you love, you can rest assured that your offer will be taken very seriously because your agent will present your pre-approval letter with the offer to purchase.
You’ll look good as gold to the seller because your financing has already been backed by your lender. Think about it. If you’re a seller and you receive two offers — one above full price, but without a preapproval letter and one at full price with a pre-approval letter — which one would you chose? You’re going to choose the “sure thing” and not the question mark, right?
Visit your local real estate brokerage to get an overview of the purchasing process and to discuss your concerns and your dreams with an agent who can help you take those first steps toward home ownership. They’ll help you find a great local lender and soon you’ll be moving into that wonderful new home. Call today to set your appointment with a local agent. What are you waiting for?
