WE ALL WANT TO START LOOKING AT HOMES BEFORE COMMITTING TO BEING IN THE MARKET.......
So why is it so important to get Pre-Approved by a lender before you start your search?
Ok, we all do it right? You just want to see what's out there, you're not serious right now just testing the waters to see if you might be interested in buying a home, so what's the harm? I know the harm and I STILL do it! I just get the satisfaction of telling myself I have to do it to keep up with the market (which I do), but I've still fallen ill to it's evils.
The harm is that while you are "testing the waters" or "casually looking" you come across your DREAM HOME! The one you can't live without, the one that's just waiting for YOU to buy it. Now you are under the gun.......you have to get pre-approved and quick! And you have to get pre-approved for an amount that allows you to write an attractive offer on that home.
Now I'm not saying this will always happen, and for some lucky people it works out fine, but here's the scenario most buyers will run into. You've done your research and you know what percentage of your income lenders look for you to spend on your mortgage every month, so you weren't looking outside of your "price range". So no biggie, you are now at a very reputable and by the book lender and, oh no! You forgot about taxes and insurance so now that home you looked at and loved that you can't live without is out of your price range.
OR
You have child support payments that the lender takes into account that you forgot to consider, or the car loan you have out, or the home you currently own that you are upside down on your mortgage in. There are so many factors that lenders take into account and I won't pretend to be an expert in that. That's why there is a separate license for mortgage lenders!
But now you have the taste of your DREAM HOME in your mouth and nothing else will do. So you basically have two options. Option #1 start looking in what is ACTUALLY your price range, or Option #2 go to a less than reputable lender (because yes there unfortunately are still some lenders out there who will put you in a loan you can't afford).
Ok, now here's where I'm going to give you a piece of unsolicited advice. If you did start shopping and find yourself in this situation, ALWAYS ALWAYS ALWAYS go with Option #1!
Now hopefully it doesn't come to this! If you talk to a reputable REALTOR when you start your search, they will have a list of lenders they have worked with and this should keep your home-buying experience grounded and fluid.
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