THE PATHWAY TO BUYING
GETTING PRE-QUALIFIED
If you plan on buying a property, you must get pre-qualified unless you plan on paying 100% with cash. This is the first and most crucial step. If you don’t have a lender, I recommend a few great ones.
Misconceptions:
1.) One of the main reasons buyers hesitate to get pre-qualified is the fear of a negative impact on their credit score. However, most lenders can perform a soft pull on your credit, which does not affect your score.
2.) Another mistake others make is getting pre-qualified with too many lenders. Too many soft pulls can hurt your credit score. I recommend researching lenders and committing to one that can help you.
Division of privacy: Privacy is a crucial consideration when choosing a lender. By working with a lender, you can keep sensitive financial information confidential. As a result, I don’t necessarily need to be privy to these details. The lender will assess your financial situation and determine what you can afford, which, in turn, will allow me to know what you can afford.
Loan originator vs bank lender: Understand the distinction between a loan originator and a bank lender. You want a lender who will advocate for your best interests. In my experience, loan originators excel in this aspect. They will guide you towards the loan product that best suits your needs rather than what’s most beneficial for their business model.
Character: The most significant attribute you should look for when selecting a loan officer is character. One of the best ways to assess this is through personal referrals. Find a lender who comes highly recommended by people you trust, as they have experienced their services first-hand.
Common mistakes around lending:
1.) Buying things on credit when in the process of purchasing a home. The story is all too common. Clients get under contract to buy a home and are excited about filling it with furniture. They put the furniture on a credit card, disqualifying them from the home loan!
How this can be avoided: Maintain open communication with your lender. Discuss any major credit card purchases with them. They have a comprehensive understanding of your credit situation and can provide valuable advice to ensure your home loan remains secure.