When it comes to buying a home, most people think the process works like this:
1. Hire a Realtor™.
2. Find a home.
3. Get a mortgage loan.
You want to know a little secret? That’s all wrong.
“I say it’s a ‘little secret’ because the truth is – if you know that’s not the right order to do things, it might be just the advantage you need to make sure your offer is accepted by a seller – instead of another buyer’s,” reveals Rick Piette, owner of Premier Mortgage Lending in Las Vegas.
“In fact, it may surprise people to know that the real steps people should take when they’re buying a home are quite different. And I’d like to explain them in more detail – and in the order they should occur. (It’s always been our experience that the homebuyer who is the best prepared, receives the best results!)”
1. Interview and choose the right mortgage lender.
In previous articles we’ve explained “How to Find the Right Loan Officer for Your Mortgage,” and how “Choosing the Right Mortgage Lender Matters More Than You Know.” That information will help you know what different types of lenders are, and what questions to ask them to make sure you are getting the best deal and service.
2. Have your lender help you determine the budget for your new home.
One trap that many unprepared buyers can find themselves in is having a “general idea” of their price range – but when the time comes to show they can qualify for a home that falls on the high end of that ‘range’ – discover that they don’t qualify to purchase it. Few things are worse than shopping outside your budget range, falling madly in love with a home, and making the (incredibly long-term) decision to overextend yourself, or have to give up on your future plans because of an impulsive past decision. Just avoid that problem entirely – and stick with your planned budget.
3. Get your loan Pre-Approved.
As mentioned above, the old-school mindset for buying a home used to be: Shop for home, Find home, Get mortgage loan. Not so much anymore. There’s a new first step that any reputable Realtor™ is going to strongly recommend – or in fact, may even require before they’ll begin working with you: Getting pre-approval for a mortgage loan. And there’s a very good reason for that – in fact, more than one.
First, getting a pre-approval for your loan removes the “wish” factor and gives you more confidence to shop wisely for the home of your dreams. Second, while the market is always changing – it’s not all that uncommon any more for a seller to get multiple offers to buy their home. Put yourself in their shoes: You’re the seller, and you’re looking at offers from three different buyers. All things being equal (assuming they all offered the same price and the same general terms) – you’re going to be far more interested in choosing the buyers who have their loan pre-approval letter in hand, which proves they have the financial wherewithal to actually close escrow successfully. And since you were smart enough to get that pre-approval – you’ve got a good chance of beating those other two buyers to become the new owner.
4. Find the right Realtor™.
It can be confusing to keep up with all the legalities and details in buying a home – in fact, nearly impossible if you’re not an experienced real estate sales agent. Again, interviewing and choosing the right Realtor™ is critical to make sure you are fully protected during the entire transaction. Knowing the area and neighborhoods, having sales data, knowing market prices, being familiar with all the listings in the area you want to live, inspections, contracts – well, you can see – the list goes on and on. Protect yourself and your investment by working with an experienced agent who has your best interests at heart (and are also their legal responsibility).
5. Choose your dream home and make an offer to buy it – then get your keys!
The fun begins! By choosing the right real estate agent, now it’s just a matter of following your heart (within the constraints of your budget and your list of must-haves and location choices, of course). One of the other reasons it’s fun? You’ve already got your loan approval in-hand – so when you find your Dream Home, there’s a good chance that because you’ve gone the extra mile to prove you can qualify and close this purchase – if you end up in a bidding war with other buyers – they’ll choose you.
“Being prepared at a moment’s notice to jump on the ‘absolutely perfect’ home opportunity is simply a matter of rearranging the order of the steps that everyone takes when buying a home. If you think about it, just the small fact of having that pre-approval in your hand can turn a missed chance into a life-changing experience,” Piette continues. “Who wouldn’t rather enjoy the latter?”
To start preparing now for the “win” of getting the home you really want – and to save thousands of dollars in the process, too – contact the experienced mortgage professionals at Premier Mortgage Lending. Premier Mortgage’s true “No Fee” Mortgage Loan can really do that. Call 702.485.6600 – or visit the Premier Mortgage Lending website. Or, apply right on our website for a mortgage loan, click here.
Premier Mortgage Lending, NMLS #393282, is located at 701 N. Green Valley Pkwy., Suite 125, Henderson, 89074. The full-service lender is a member of the Las Vegas and Henderson Chamber of Commerce, Better Business Bureau and Southern Nevada Home Builders Association, as well as an affiliate member of the Greater Las Vegas Association of Realtors.