Pre-Qualify before you Buy!
By Grace on May 21, 2008 in Market News
The term “pre-qualified” pops up a lot when you’re thinking of buying a home. Chances are it will be one of the first things you hear when you contact a real estate agent in the Dallas area. You will probably be asked if you are pre-qualified, right up front. You and your agent will save a lot of time getting you pre-qualified for a house. There are benefits and reasons to discuss loans with a mortgage company even though you may not have even looked at a single property.
The Benefits to Pre-Qualification
You are going to need to know what your budget is, before you even look at your first home. Imagine picking a home, falling in love with it, and discovering that it is way out of your financial league. Perhaps you’re looking at a four bedroom villa, and your budget says two bedroom condo. Knowing this right up front will help your real estate agent search for homes that realistically meet your needs, without wasting your time or his. Don’t spend a lot of time looking at properties that just won’t work for your budget.
Another advantage to getting pre-qualified is that you’ll have time to shop for a mortgage lender. Your home is probably the largest investment you’ll ever make, and you’ll want to make it wisely. Loan rates can vary widely from lender to lender depending on your credit and their policies. Don’t’ jump at the first mortgage company that contacts you. Read the fine print. Make sure that potential lenders are offering what you think they are. Take your time; don’t make mistakes. They are frustrating and can be terribly expensive.
The Search for a Lender
The search for a lender begins with a credit report: yours. Make sure you get a copy of your credit report so that you know what you’re facing. Make an appointment with your own bank or your spouse’s credit union. Search for programs that discount the fees or throw in free services as an incentive. Every community has local mortgage brokers that will know the area well, but you may feel just as comfortable with a large national lender. Large areas like Dallas have many lenders. Search on the Internet for mortgage lenders, look in the yellow pages, or ask your real-estate agent for recommendations. You’ll be glad you took a little bit of time to get pre-qualified, so that you could look for the house of your dreams.
