Before you make a purchase of any kind, what is the first thing you think of? Affordability, right? Let's face it, if you are planning a trip to the car dealer, you sit down and explore your budget and try to determine how much car you can afford.
The same is true for purchasing a home. Sit down and explore your budget. What are you comfortable paying monthly for a home? Don't forget to add property taxes, hazard insurance, and HOA dues.
Once you have a personal budget, you need to find a lender. Don't just pick a bank and apply. Get some guidance from your Realtor. Realtors have a relationship with lenders and work closely with them to provide clients with exceptional service and rates. The lender will alert your Realtor if there are any problems that may arise, so your Realtor can be front and center handling any problems before they cost you money. Your earnest money that is.
Several of my past clients have chosen to use a "big bank" because they were longtime customers only to find out they were just a number and in the end had to expedite a new loan through my favorite "go to lender". They also saved a bunch of money afterwards, so it was a very nice surprise.
Once you have an application completed, the lender will ask for a list of documents to support your application. Identification, recent pay stubs, last two years tax returns, bank statements for a period of time, and any other documentation to support your income. The lender will run your credit and check your score and then they will determine how much you can afford based on your income and debt payments.
The lender will then issue a Pre-Qualification or Pre-Approval to you and send a copy to your Realtor. It's a required form when submitting an offer on a home. That's right, you must include a Pre-Qualification Form or Proof of Funds (if paying cash) with any offer in Arizona using the Residential Real Estate Purchase Contract.
The process is relatively painless and can be completed in as little as a few hours. Once complete, you have a budget and know exactly what you can purchase based on what a lender will loan you. If your budget was more than you thought, you don't need to spend it all. If it's less, you saved yourself some heartache. There is nothing worse than finding out the home you love is the home you can't afford.
Save yourself some grief and sadness and call me today. I'll have my favorite lender call you, and you'll be glad you did. Have questions about a home you saw online? Already have a Pre-Qualification and ready to see some homes? I would love to hear from you. I can schedule showings fast and as an experienced Realtor I'm ready to make your dream come true. Use the contact form, or call me on my cell at (602) 501-0963.
Next up.... Picking a neighborhood -