Many of the people that I work with are referred to me by one of the great local Realtors that we have here in the Valley. Some of them have already spoken to at least one mortgage professional prior to house shopping, but many of them haven’t.
My initial conversation with the client goes something like this:
Client: “I found this great house and I want to see if I can qualify for it.”
Me: “Ok, great! Let’s talk about your mortgage options and decide what works best for you…”
Have that conversation more than once a day and you might start to wonder “Is the home buying process the only purchasing activity where the consumer picks out what they want before they see how much money they have in their wallet?”
I guess it might be somewhat understandable, since most of America buys a home with a mortgage rather than cash – but it seems to me like if you are thinking of buying a house, you might want to talk with a mortgage professional before you start looking for a house.
4 Reasons You Should Talk With A Mortgage Professional Before Shopping For a House
1. If you are considering a USDA loan because it is one of the few 100% financing programs still available, only properties in certain areas can qualify for USDA financing. It might be wise to learn where those areas are before you set out on your home-shopping-trek.
2. You might not be able to qualify for a mortgage at all. Guidelines have tightened up over the last year and it is more difficult to get a mortgage than in years past. No use wasting your time looking for a house if you can’t qualify for one in the first place.
3. Great mortgage people know the best Realtors. And the worst ones. Kind of like most Realtors know a great mortgage professional – but Realtors usually know only a small handful of great loan officers. Great loan officers know more than 20 good Realtors and probably more than 10 great ones. If you talk with a mortgage professional before shopping for a house, we can easily recommend a few great Realtors to you.
4. It is considered “financially responsible” to figure out how much you can spend before you go shopping. Want a sure trip to the therapist? Go ahead and fall in love with a house that is out of your price range. In our house, Tammy is the responsible one – she always makes sure that I know how much we can spend before we leave the house. Whether it is to Basha’s, to Nordstrom’s, when shopping for a car… and especially when house shopping.
What happens if you work with a Realtor and pick out your dream house before you talk with a mortgage professional?
Sooner or later you may end up in the therapist’s office because you ended up with a house you couldn’t afford.