The simplest route to buying a home from a process point of view is paying cash. If you cannot, or do not want to pay cash for a home, then you need to finance the home. Typically this is done through a lender and we recommend that you meet with one before you start looking for homes. There are a number of benefits for you if you do this.
- You save time by only looking at homes within the range of what you can actually afford to buy.
- You avoid the disappointment of not falling in love with homes that you may not be able to afford and then having to “settle for less” which is never a pleasant feeling.
- It creates an environment for a transparent relationship with the service providers you will work together with in the process of buying your dream home.
- It gives you peace of mind by taking a lot of the guess work out of buying a home.
- It places you in a strong position in a multiple offer situation where more than one offer is being presented at the same time on a property. (Unqualified buyers are in the weakest position and are given the lowest consideration).
We recommend you get with a lender early in the buying process. We can present you with a number of lenders whom we have worked successfully with in the past who have looked after our clients in such a good way that we are happy to refer them out.
Some questions you should ask your lender include:
- What out of pocket expenses will I need to consider when buying a home?
- What financing options are available to me?
- What are closing costs?
- How much should I budget for closing costs?
- How long does the process of qualifying take?
- What documentation will you need?
A good realtor will assist you in taking this step. When you elect not to get pre qualified first, it will slow down the entire buying process and places.