4 Reasons to Talk to a Lender Now
Take the stress out of homebuying.
Finances are a topic that we are often taught to avoid. It’s impolite to ask someone about their salary or debt. Unfortunately, in real estate, we can’t skip over the awkward finance talk and go straight to the fun stuff — like finding you a house.
I know, I know. It feels so rude and intrusive to have someone ask if you’ve been pre-qualified by a lender before you can view a house. I get it, you don’t want to get pre-approved yet, because you don’t know if you’ll even like the house. Why impact your credit score for a house that you may not even like?
From your perspective, I can see where you’re coming from. I really can, but let’s talk about why real estate agents need to ask such an invasive question from the get-go. I promise the reasons aren’t as selfish as you may believe.
1. Know what you can afford.
My mom had her real estate license long before I ever got into the business. Do you know what she made me do before she would show me any houses? She made me talk to a lender. Why? There was no reason for her to show me a house that I couldn’t afford. Technically, she could have shown me houses I couldn’t afford all day long, but it would have been a waste of time. It would have been a waste of her time, my time, and the seller’s time. Plus, if she had shown me houses I couldn’t afford, I would have compared every house that I could afford to the houses that I couldn’t afford.
TIP: A lender will help you pinpoint what price range you can afford, but that doesn’t mean you have to look at homes at the highest price point. Look at homes in a price range you’re comfortable with.
2. Know your options.
Nobody should know your finances better than you do, but do you also know the ins and outs of financial loans? Do you know if you need to ask a seller to pay some of your closing costs? Do you know the difference between a USDA, FHA, or conventional loan? For most people, the answer is no. A lender does though. Use their knowledge to your advantage.
3. Flex your buying power.
Sellers want to know that you can buy their home. A seller doesn’t want to spend their time negotiating with buyers who can’t buy their home. Sellers are looking for serious buyers. Having a letter from a lender helps show sellers that you are willing and able to buy their home. Don’t underestimate the power of credibility, especially in a seller’s market.
4. Time is of the essence.
If you’ve ever applied for a loan, then you know there’s a significant amount of paperwork involved. Get pre-approved before you submit an offer. Get some of that paperwork out of the way, which will put you one step closer to homeownership.
Buying a home doesn’t have to be stressful. Call a Realtor. Call a lender. You can thank me later.
