I often get asked by new home buyers: at what point in the process should we speak with a mortgage professional?
Let’s face it- no one gets excited to talk financial numbers and collect documentation- so most people save meeting with a mortgage professional as last on their to-do list.
In reality, meeting with the mortgage professional or lender should be first.
Most reputable realtors will not even begin looking at possible new homes with you until you have been pre-approved with a mortgage professional. The last thing realtors want to happen is for you to find a home that you are completely in love with only to find out that you either do not qualify for such a large mortgage OR the monthly mortgage payment is higher
than you were looking to spend.
The benefit of meeting with a mortgage professional right when you decide that you want to start the process of buying a new home is that you will know without a doubt how much of a home you will qualify for along with what the estimated monthly payment will be. I have clients that come to me months before they start looking so that they can structure their budget to fit a higher mortgage payment so that when they finally close on their dream home they are already used to making the new mortgage payment.
Another benefit of going to a mortgage professional first is that mortgage professionals work with many different types of realtors on a day-to-day basis. Once the mortgage professional has an idea of what type of home you are looking for, your budget, and a geographic area you are looking to live in, they can provide recommendations for realtors that specialize in your needs. Although you may have a realtor in mind to work with (your cousins best friend’s neighbor)- you may decide that working with a realtor that specializes in what you are looking for (ie- lake homes, condos, urban vs rural, etc) has it’s advantages- and a mortgage professional will be able to make an introduction for you.
In addition to having the best mortgage professional and realtor- once you do purchase your home or condo, you will want to make sure you have it covered with homeowners or condo insurance. Again, you may think that you should just use the person who can save you 15% in 15 minutes- but protecting your largest asset- your dream home is worth taking a few extra minutes and making sure you have all of the appropriate coverages. A good mortgage professional will be able to give you a recommendation for a great insurance agent.
The home buying process is already a stressful time and having the right professionals behind you will make it that much easier. Think of them as your dream-team helping you buy your dream home.
When you finally decide to make the exciting choice of buying a new home, whether it is your first time or your 10th time, it is imperative that you speak with a mortgage professional first. Create a folder and start putting in copies of paystubs, bank statements, and tax returns early on so that when you meet with the mortgage professional you don’t have to go on a wild goose hunt for documents. Also, try to think of a monthly mortgage payment you will be comfortable making and start budgeting like you are making that payment right away. Put the extra money into savings to help pay for moving costs or any light renovations you may want in your new home.
All of these steps are things a good mortgage professional will go over with you on your first meeting and they will set you up for the successful closing of your new home.
Once you have decided you are ready to take the plunge and start to look for a new home- I’d love to sit down with you and start to assemble your dream team. Give me a call at 262-439-8043 x 208. You can also email me at firstname.lastname@example.org.
To start your mission- you can fill out this form and I will contact you to get started. Let’s build your dream together!
Written by: Sam Mueller of Quest Home Loan Center
Loan Originator NMLS #1476197