With the market as crazy as it has been since the pandemic, you may be thinking that buying a house is completely out of reach! But unless you talk to a lender, you really won’t know. So if 2023, or even 2024, is the year that you want to take the step towards home ownership, it pays to go ahead and talk to a lender to see if your dream can become a reality! Feel free to click here to see my current video on why it is a great idea to talk to a lender now!
Here are 5 great reasons why it pays to talk to a lender now, even if you aren’t quite ready to buy a home! A lender can —
WALK YOU THROUGH QUALIFYING SOURCES OF DOWN PAYMENT!
There are lots of ways to save up for your down payment – gift funds, savings accounts, investment accounts! The lender will let you know just which sources will be best for you and how you need to be able to access those funds in order to have the money you need to have the down payment you need!
ADVISE ON HOW TO IMPROVE YOUR CREDIT SCORE!
Different loan types have different requirements regarding minimum credit scores! How much you have to pay in closing costs as well as the interest you will pay on the loan can also be affected by your credit score. The higher your credit score, the lower your interest rate may end up being. The higher your credit score, the lower your closing costs may be. Your lender will be able to look at your current credit score and, if you need to improve it, they will help you map out a game plan to improve the credit score so you get the best interest rate and best loan!
CAN ADVISE YOU DIFFERENT LOAN OPTIONS!
There are lots of loan programs out there. Not every loan program is right for every buyer. Not every loan program is right for every property. Talking to the lender will let you know what are the best loan programs for your situation and your finances.
DETERMINE HOW MUCH MONEY YOU WILL NEED!
In addition to the down payment, you will also need to have enough money to cover your closing costs! In this current real estate market, there is no guarantee that you will be able to have the seller cover your closing costs. In addition to the down payment and closing costs, you should also have money saved for moving expenses and any repairs you will want to make when you close on the home!
GIVES YOU TIME TO GET MORTGAGE READY!
Talking to a lender now lets you know how much time you will need to get yourself to a point where you are financially ready to buy your home! It gives you time to save up money you will need and it will allow you time to hopefully pay down any debts you may have and to get yourself ready to begin the actual home search process!
Buying a house is a great experience – it can be so exciting, it can be so scary and it can feel so stressful – all of these emotions at one time! So even if you are a few years away from being ready to buy a home, why not talk to a lender now so the lender can “demystify” the process for you so you can be ready whenever the opportunity presents itself!
If you would like to sit down and discuss the home buying process, or you would like a lender to talk to feel free to contact me and let me know how I can help! I work with many first time home buyers and would be happy to give you several recommendations! No obligation – no pressure!
