You’ve heard the expression “don’t put the cart before the horse”. Well this holds true when wanting to purchase a home. If you are looking to purchase a home you should find a lender before finding a Realtor. Getting pre-approved should be viewed as a mandatory step before looking at homes! Would you go shopping without bringing your wallet? Exactly. How do you know how much you can buy without knowing how much money you can spend?
Why even window shop if you don’t know how much you are approved for? When looking at those houses online you may have no idea what price point you should be looking at and could be setting yourself up for huge disappointment. The Denver Real Estate market is on it’s head! So not only will that home you may have fallen in love be gone by next week, but you may be setting yourself up to pursue something that may not even be within your reach.
We all know when you start looking at houses online it helps give an idea of what your must-haves, and no-gos of what you don’t like in houses. If you are not pre-approved, you may jump to do this, Once you find the perfect house. Scrambling to get any lender who breathes because you need this house, have to have this house.What happens if you find out that you are not approved for that purchase price? or you are and find the payment is hard to swallow, what then? This is where the disappointment will set in.
Again, don’t put the cart before the horse! First things first, get pre-approved so you can know if & what amount you are comfortably pre-approved for. What loan options are available based on your situation. Because whatever your friends/family/colleague did, is not likely the same for you, unless you have the same financial DNA and an identical credit profile (odds not likely, as the old 8 ball says). It also helps to know what amount you will need not only for the down payment but also closing costs. What we call the “all-in”. It’s better to strategize and plan with your lender so you know what’s involved and what to expect when you go looking at houses. You will also have a stronger sense of confidence and be self-assured you are making the right decision when you know all the numbers work (payment and funds).
Yes, you may be anxious about getting pre-approved, you may be reading and hearing that homes prices will be rising and rates may be increasing, but here is the truth. Houses will always go on the market, prices may continue to increase and may even plateau. Rates will always be changing but here is the thing, when it is your time to buy, the right home will be there when you are ready. There is no need to panic, feel anxious, rushed or pressured. Take your time and purchase a home having all your ducks in a row, put the horse before the cart.
If you have any questions, would like to discuss or are ready to get pre-approved, please contact us.