Monthly Archives: March 2012

First Steps All Home Buyers Must Take

Walking on to a new car lot can be fun.  You get to see all the latest technology and styling, and imagine yourself behind the wheel.

And then, after glancing at the sticker, reality sets in.

Looking was fun, but the sticker reminds that—before you can actually own that new car—you’re going to have to play the “show me the money” game.

Having your funding secured for the purchase of a new home is just as important.  After all, if you don’t have the money needed to make buying a home a reality, what’s the point of looking?

Having enough money on hand to pay cash for a home is great, but let’s face it … not everyone can do this.

The alternative, then, is to get a loan.

Unfortunately, a number of people looking to buy a home in the Birmingham area wind up starting the loan process the wrong way, which goes like this:

  • Buyer decides to buy a home
  • Buyer starts the home search, driving neighborhoods, looking at homes
  • Buyer finds the perfect home (“I want it!”)
  • Buyer starts envisioning the new home as theirs (“Living here will be great!”)
  • Deciding to move ahead with purchase, Buyer asks Lender for a loan
  • Lender looks over Buyer’s information and says, “sorry, can’t help”
  • Entire process comes to screeching halt

The scenario above is a classic invitation to major Buyer disappointment.

It doesn’t have to happen this way.

Colleen and I feel strongly that the first–and most important–steps in the home buying process are to contact us as your Agents and then speak with a Lender.

By finding out how much money you can borrow before you start looking, your search will be easier, as well as more targeted to properties that fit within your price range.  If there are parts of your financial background that need work, a Lender can be a good resource for charting a course for you to follow so you can be approved.

If you’re thinking of buying a home, a good Lender will answer all of your questions and make you feel comfortable with the entire process of obtaining financing.  Since buying a home is the biggest purchase many people make, if you don’t have this feeling of comfort, our advice is simple:  Find another Lender.

Buyers lacking some time of financial qualification may be in for a surprise, given a reality we see all the time in the Shelby Co. and Birmingham real estate market:

Sellers want some assurance that a prospective
Buyer can actually obtain needed funding.
“Show me the money.”

If you try submitting an Offer without including either a loan pre-qualification or verification of funds (if paying cash), many Sellers simply won’t deal with you.

We know of several good Lenders in the Birmingham area with a thorough knowledge of the mortgage profession, different loans, costs and how they work.  These Lenders have a strong commitment to providing good service.

Fortunately, most of our Clients purchased their home the right way, having contacted us first and then following our advice on consulting with Lenders before we started helping them with their search.

As a result, they are now happy homeowners.

David