Purchasing a home is a BIG step and a BIG decision. The average person spends around 1/3 of their income on their home. A good local lender is invaluable and is the first most important step to purchasing a home – a local lender can make the difference between a smooth transaction and a nightmare. Pre-qualification is painless and takes just a short time over the phone. It is highly recommended that a local lender be used as opposed to an on-line lender or a lender from another state. Lenders must be aware of the customs, rules, practice and procedures for the State of Arizona.
The security of your transaction begins with the quality of your advisors and one of the most important advisors in a real estate transaction is your lender.
If you do not already have a local lender you are working with we are happy to recommend several for you to choose from that we know and trust.
1. Looking at homes before loan pre-qualification can be very disappointing. You don’t want to fall in love with a home you ultimately find you cannot afford. You will always compare what you CAN afford to the more expensive homes you saw, making it very difficult to find one that you will like.
2. When you find the home you want to submit an offer on we need to submit your loan pre-qualification letter with the offer. (In February 2011 the Arizona Association of Realtors added the “Pre-qualification Form” to the purchase contract. This page tells the seller that you are able to qualify for the mortgage). If you do not have your loan approval you run the chance of the home being sold to another pre-approved buyer while you begin the process.
3. It is important that you are aware of the changing mortgage industry requirements and tightening lending standards to be sure you are comfortable with what will be required of you in terms of down payment, fees, type of loan, etc. It will diminish the anxiety associated with borrowing and the decisions that have to be made.
4. We would typically make an offer lower than list price and your offer carries more weight if you have a pre-qualification letter to accompany it. The seller is more willing to negotiate with a strong, able buyer.
5. You very well may find yourself competing with other offers on the same home. If you submit your offer with your pre-qualification letter the seller will give you stronger consideration.
6. Finally, if in the process of speaking to a lender you find you cannot currently qualify that lender will help you determine what steps to take over the coming months to get you into a position where you can qualify (what you need to repair or how much you need to save to qualify) so you can eventually move forward exploring your options for your new home.
Director of Relocation