In a poll of 1,000 home buyers, just over half found the loan process simple, but nearly 25% said they would rather gain 10 lbs than go through the lending process again and 13% would rather spend 24 hours with the person they dislike the most; some even said they’d prefer a root canal or a night in prison!
Lack of confidence and uncertainty while making major financial decisions can can be a stressful and emotional ordeal. When you have a competent and ethical team in your corner, buying a home can be one of the most exciting and rewarding experiences. Here are 3 ways that Realtors® elevate your home buying experience:
Helping you Find the Right House in Today’s Market
Any broker can help you determine your new home wish list (number of bedrooms, neighborhood, nearby amenities, etc.) but an experienced Realtor® will help you establish the reasons behind your wish list and propose alternatives you may not have entertained otherwise (i.e. would you be willing to settle for a smaller backyard if there is a park nearby?). They also help you manage your expectations given the current market. In a high inventory market you may be able to leisurely entertain more options but if your in a low inventory market you must be ready to move quickly and anticipate a multiple offer situation.
Many people assume that once they have a lender’s pre-approval they are ready to go. Unfortunately, that may not be the case and learning about discrepancies or long-forgotten debts after an offer is accepted may leave you scrambling to close on time. An experienced Realtor® will encourage that you work with a reputable lender (preferably local to expedite closing) and encourage you to pull your credit report directly from the 3 bureaus for accuracy and work to resolve any blemishes before time is of the essence. Credit reporting sites like Credit Karma may report credit scores higher than what your lender will use so its best to go directly to the source.
Pre-Qualification, Pre-Approval, or Full Underwrite – What’s the difference?
Pre-qualification and pre-approval are often used interchangeably and are the first steps in the loan process. In New Mexico, the pre-qualification letter is granted by a lender after you provide basic information about your income, assets, debts, and your credit score. Documentation may not be required therefore the lender can only provide an estimate of what you can borrow. A pre-approval letter requires documentation of the same and a credit check resulting in a better (but not best) estimate of what you can qualify for. Neither of these letters guarantee approval leaving room for a stressful closing should anything arise particularly if you have complicated income or assets such as passive income from rental properties, investments, or if you are self-employed. Your Realtor® may recommend that your lender perform a full-underwriting to eliminate all uncertainty about affordability, minimize future concerns, and set you up for a smooth and successful closing.
Source: Scafer, Jill (2018, August 1). 5 Steps for Creating A Zen-Like Transaction For Your Buyers. Retrieved from https://www.inman.com/2018/08/01/5-steps-for-creating-a-zen-like-transaction-for-your-homebuyers/?utm_source=dailyheadlines&utm_medium=email&utm_campaign=localnewsletter&utm_term=&utm_content=684819_national_textlink_1