Nothing is more exciting than shopping for your first home. However, we want to make sure that you don’t miss the first and most important step in the homebuying process—contacting a loan originator. This first step is crucial and will not only help you understand which loans you qualify for, but will also make you more attractive to real estate agents and sellers.
Here are four reasons why you should speak to a loan originator before you start house hunting.
To see which type of loans are available to you, a loan originator will first start the process by asking to pull your credit. From here, your loan originator can tell you which debts may be depleting your accounts or harming your chances to qualify for a mortgage loan. Once they have a chance to analyze your credit position, they may even recommend that you schedule a meeting with a credit repair specialist if they fell you have significant opportunities for improvement.
Knowing how much home you can afford will save you time, energy and money. By speaking with a loan originator and calculating your finances in advance, you won’t waste time shopping for homes you can’t afford or even overlooking homes well within your acceptable price range. Setting financial expectations will make you more aware of your purchasing power and the competition within the local real estate market.
Show real estate agents and Realtors that you are serious about purchasing a property and present them with a preapproval document you received from your loan originator. A preapproval is a letter from a lender that specifies how much money the lender is willing to loan you. Establishing yourself with a lender first, will let the real estate agent or Realtor know that you are prepared to make an offer. This letter is as good as cash and provides you leverage with the home sellers in a competitive buying market if you decide to place an offer.
Loan originators are connected to many professionals in the real estate industry and have a large network of preferred agents and Realtors. Use this to your advantage and ask your loan originator for an agent recommendation. Also, use this same network to gauge the industry reputation of the loan originator you plan to work with and pull honest reviews from previous referral partners and customers.
Our loan originators at Envoy Mortgage are ready to advise you on the best first time home buyer loan options for your budget. Reach out to one our team members today and turn your dream of homeownership into a reality.