The 3 most important things to know about “financing”…
- No real estate agent worth their salt is going to let their seller accept an offer without reasonable proof that the buyer is financially capable of buying the property. That means that if you don’t have your approval in hand when you find your dream house, you’re going to lose it 🙁 Hands down, getting your financing ducks in a row is the most important thing you and your agent can do once you’ve chosen who you’re going to work with.
- What you think you can afford or what you’re comfortable with do not always line up with what you are willing/able to borrow. There are all kinds of factors like debt to income ratios, housing expense ratios, loan limits, down payment considerations, etc. Sometimes people are comfortable paying more than a lender will allow, and sometimes it’s quite the opposite. Before you start looking at homes (even online, if you can hold yourself back 😉 ), talk to a lender. Any one of them should have online options to submit an application if you choose, and you should have a decent idea of what your price point will be within about 24 hours. If you start looking before you know the price that’s going to work for you, you (a) waste your time if you’re looking lower than you can comfortably afford, or (b) you have to reset your expectations from more expensive houses to less after filling your brain with options that aren’t in line with what you decide with your lender. And that’s a tough pill to swallow. Far better to check with a lender first.
- NOT ALL LENDERS (just like agents) ARE CREATED EQUAL!! It’s great to shop around and you should absolutely get the best deal, but it’s imperative that you work with your agent to make sure you are going into your lending relationship with your eyes wide open. Agents often have lenders they work closely with and there’s a reason for that…and it’s 100% for your benefit!
*If you are in need of a lender referral, text, call, email, or PM me and I’ll shoot something right over*