First-Time Home Buyers: Don't Overlook This Step!

Most home buyers go through the experience of buying or selling a home only a few times in their life. Add to that the fact that those events are separated by a span of several years and it’s easy to forget the myriad of details involved. That’s where an experienced real estate agent proves an invaluable guide through the world they navigate every day. If you’re a first-time buyer, don’t attempt this journey alone!

Important First Step

In my many years as a real estate agent in Orange County, probably the most critical step I’ve seen first time home buyers overlook is the pre-qualification or pre-approval stage of the lending process. Knowing up front what type of loan and amount your lender will approve for you can really make or break your successful search for a home.

Why Pre-qualify or Pre-approve?

In this competitive real estate market where cash players and even multiple bids are common, sellers are more likely to consider buyers who come to the table with their financing prepared. Until you’ve talked to your lender, you won’t have defined that important piece of the home buying process.

It is actually preferable to get pre-approved for a loan rather than pre-qualified -- it involves gathering more detailed financial information and in some cases may even involve running a credit report. When you have a letter from your lender stating that you are pre-approved for mortgage financing, you put yourself and your agent in a better position for making a legitimate offer on your dream home when you find it.

What Does The Lender Want?

The lending business is based on risk assessment. The lower your risk of defaulting on a loan, the better the rates and terms the lender will offer you. Your risk level is estimated by examining your borrowing habits, credit history, employment history, and amount you’re able to apply to a down payment on the property, to name a few. If you have a lot of debt in relation to your income, outstanding judgments, child support or alimony, or any other financial contingencies, the loan approval process gets trickier.

The Market Is Changing, Are You Ready?

Orange County home sales volume for May was up over 11% compared to 2012, and the median price increased 24% compared to last year.* If you’re thinking of buying soon, talk to your lender and get your financial piece of the puzzle sorted out. Then find a trusted agent and begin your search!

A professional, licensed real estate agent has the experience, the knowledge, and the time and resources to help you find the home that meets your needs and help guide you smoothly through the entire process. For example, my clients not only benefit from my 15+ years’ experience in Orange County real estate, but they also have access to proven trustworthy and reliable lenders, escrow and title companies, as well as contractors and home inspectors. Choose someone who will remain committed to you throughout the journey, and who will treat your search as if it were for their own home.

Nanette Shapiro

(714) 924-0781

nanette.shapiro4@gmail.com

www.homesbynanette.com

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*Source: DataQuick