Buying A House Guide Tip #2 – Get Approved For a Loan is a great way to get your offer accepted over the others!
A lot of Buyers don’t see the need to visit the bank and discuss the possible loan programs until they find their dream home. They want to make certain there is something out there to spark their interest.
Why would they sit around some stuffy bank baring their soul – and their financial details – until they know positively that they want to proceed with a home purchase?
Buying A House Guide – Get Approved!
When a Seller puts their home on the market, they want to make sure that the people interested in buying their home can actually perform. Usually, this means obtaining bank financing.
It will be difficult for the Sellers to get too excited about your offer if they hear that you still need to talk the bank into loaning you money!
Instead, do that first.
Of all the things a new Buyer needs to consider, first and foremost is their ability to afford the home. Who better to speak with than the company that will be loaning you the money to buy it?
In this day and age, banks are as concerned with the borrower’s ability to handle thew payments as the borrower should be – sometimes more so. And you will have to speak with a lender eventually - why not get it out of the way now before things get too hectic?
What to look for:
With all the loan programs from which to choose, get a professional who can explain the subtleties of each one. Listen carefully, and ask questions! They should be prepared to tell you how much you need for a downpayment ( it often changes with each loan program!), how much your monthly payment will be, and if there are any future adjustments to loan terms – like an adjustable rate or a balloon payment. It may also be worthwhile to discuss options in the length of time you have to pay the loan off.
Lastly, explain your personal situation and expectations and let them offer suggestions to you about the best loan. Then, complete an application and ask for a borrower approval or pre-approval - and a letter to prove it!
When you leave your banker’s office, it is like leaving with a suitcase full of money.
Once you find the home of your dreams, you can look the Seller square in the eye and tell him that you have all the money required to buy their home – sitting in a vault at the bank.
This puts you in the position to inspect their home rather than having the Seller judging you as a real Buyer. Believe me, your stature and the value of your offer will increase dramatically when you provide the lender letter of approval!
Don’t find yourself running around, forced into the stressful situation of obtaining financing before a better-prepared Buyer decides they want to buy your favorite home. Instead, make an offer with confidence, showing you can afford the purchase. This will allow the Seller to be confident that you are a Buyer, not a looker.
A Buyer who took the Buying a House Guide seriously and had their financing in place first!
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