If you have a big pile of cash lying around then you can just skip this post and move on the part of the real estate transaction where we find you the house you are looking for.
If you are like most of the population you do not have a couple hundred thousand dollars that you can spend to buy a house. If that is the case, than you will almost certainly need to get a loan for the purchase of your next house. This really should be the place that you start the process. With lending in its current state this will likely be the most difficult part of the process.
First let’s talk about why you should start your home buying process by finding a good lender and getting pre-approved for your loan. You should either shop around for a good lender. You can also talk with a professional like myself who can make suggestions based on years of experience dealing with lenders and already has a good understanding of who can get the job done.
Some things to consider. Does the lender know the way that your local market works? The US is a huge country and every state has its own real estate laws and practices. As a general rule big banks and nation wide lenders do not do as good a job. This does not mean that big companies don’t do a good job. It does mean that you want a lender that you can stop in and visit in their office. If you are using an internet lender that promises great prices but there is no one you can go in and get mad at if they are making a mistake, how can you pressure them to pick up the ball if they have “dropped” it? Saving a few bucks has no value in my book if they can not get you to the closing table. If you do not get to the closing table and you lose your earnest money in the process then what have you really saved. NOTHING! You have lost money and may have to start over.
Many nation wide lenders do not understand that Colorado is an at table state and all of our dates and deadlines are hard and fast. They will often have little to no motivation to make sure that things are completed by the dates and deadlines set forth in the contract because they just don’t understand the process.
The other big reason to start with lending and pre-approval is that it sets the groundwork for the home finding process. If you think that you can borrow $300,000 and you start looking at houses that cost that much and then, when you meet with a lender and find out that you can only borrow $200,000 every house you look at in that price range will be a HUGE disappointment to you. It can be very discouraging. Also, with lending in its current format you may find that you can not borrow what you expect you can afford. Underwriting has changed a great deal and it can be very tricky.
If you have been thinking about buying a home please start with lending and please contact me if you would like help making the process as easy as it can be!
Remax Properties, Inc.