Buying a first home in the Brainerd Lakes area of Minnesota is a huge step and definitely not an easy decision. Anyone entering into this process for the first time deserves special attention from a real estate professional that is prepared to walk them step-by-step through the process.
I'm here to provide you or any first time home buyers that you know with that exact level of service.
It seems to make perfect sense that as a first time homebuyer, the first thing to do is to shop for homes. Many start by investigating the market in a desirable area and finding that perfect property. Then, they contact a mortgage professional. Unfortunately, this is when the dream can fall apart for potential buyers! Essentially, they've begun the process backward. When a bank or lending institution declines a mortgage loan, for whatever reason, the potential homebuyer can be left frustrated. Buyers then face the prospect of having to start their search again, seeking a new set of properties that fall within the boundaries of the mortgage company's approval. Homes in a lower price range, often do not measure up to what they had been viewing in a higher price range.
The opposite may also be true and they actually qualify to buy in a higher price range! Smiles all around for this.
For the real estate professional, the first question to ask the client isn't, "What kind of house are you looking for?" But rather asking them, "Have you been pre-qualified for a mortgage?" Unless the buyer is paying for the house with cash, a pre-qualification is an essential element in the buying process.
The pre-qualification process isn't difficult, and as a result, buyers will know exactly what they can afford, which in turn clearly defines their choices. This common sense approach can save real estate professionals time, as they can direct clients to homes that fall within their approved price range, rather than those they can't afford. It can also save buyers a lot of potential heartache and disappointment, removing the lure of falling in love with that "perfect home" that's out of reach and replacing it with a home that, instead, will be affordably just right.
In order to make an offer on property here in the Brainerd Lakes area of Minnesota. we need to include a pre-approval letter from your lender with the purchase agreement, along with earnest money. That shows you are serious and ready to purchase.
I would truly appreciate you passing my contact information their way. I guarantee to take good care of them and to help them on their way to finding that perfect first home.
Welcome from the Brainerd Lakes - where outdoor and indoor recreational opportunites abound. Looking to buy on one of our many lakes? Ready to move up or down? Having trouble selling your home? Falling behind on payments or already in the foreclosure process? I am a Certified Short Sale Specialist as well as a Home Staging Expert.
Call me!
Know what you can buy, it makes shopping so much more fun!
I do not start working and finding homes for buyer until they are prequalified.
Steven Covey said, "First things first". The same applies when shopping for a new home.
"The pre-qualification process isn't difficult, and as a result, buyers will know exactly what they can afford, "
Unless something has seriously changed, prequalification tells you how much you can borrow, not how much you can afford to borrow. You need to sit down and do a budget for yourself to decide whether you can afford it. A lot of people get in trouble by believing the bank is doing their budgeting for them.
We got into this real estate mess, in part, because people believed that if a bank would make them a loan, they must be able to afford it. In fact, banks and lenders don't rely on your ability to pay to sell your loan on the secondary market. They rely on the underlying value of the home you are buying.
While they look at your credit worthiness, its only credit issues that would raise red flags on your loan application with the secondary lenders that are going to be considered. They aren't going to pay much attention to how secure your income is, whether you will need a new car next year, whether you have college tuition for kids, etc. In short, they don't care whether you can "afford" that pre-qualified loan or not.
Especially in this market. I realize that on a weekend that it may be hard to get qualified, so I will ask to see a bank statement with the down payment on deposit. I will then stick my neck out for the weekend.