Get pre-approved!

Over the last few weeks I've spoken to half a dozen first time buyers getting ready to buy this year. It's an exciting time for them- browsing online at homes, day dreaming about hosting parties in their backyard, pinning home decor ideas- but before I take them out to SEE the homes in person, I want them to be pre-approved by a bank for a specific amount. This may seem boring or intrusive to a potential buyer, but it's important to know you can afford the home you have fallen in love with.

I often hear; "I know I have good credit so it won't be an issue" or "I know what I can afford each month"
That is great! But banks look at more than your credit and monthly income.
I have clients that have good income, stellar credit, but not enough down payment money to afford a home that they probably could afford on a monthly basis. They were basing their new home by their monthly income, not by a mortgage approval.

Another client was ready to start the process, has a great job, money saved, but his credit was a little low due to just buying a new car the prior month. We had to put the buying on hold for a few months while his credit was improving.

It's essential to talk to a bank sooner rather than later. Why tease yourself looking at homes if you aren't sure you can afford them?
I tell clients, friends, family; even if you aren't ready for another 6 months, it can't hurt to talk to a bank today. They can help determine how much more you should save, if you need to improve your credit and some tips, and provide a good estimate of monthly payments. Bankrate.com or Zillow.com have OK tools to give you an idea, but it's not always accurate. There's no obligation when talking to a bank- it's priceless in more than one way!