Last we saw Jack and Jill they had decided to not only buy a home, but to use: “The Home Buyer Checklist You’ve Been Looking For” as well………their checklist. So they got right to it:
#1 GET PREQUALIFIED
Deciding that you want to buy a home is not really the first step in home ownership and your path to personal wealth. Before you even start looking at homes, you need to get prequalified. Your REALTOR can help you decide what type of lender to prequalify you, but going through the steps to get prequalified will help you decide if this is the right time for you to buy a home. Ther interest rates may be right and homes may be available, but your financial future may not be ready….yet.
Here’s another way to look at it:
You’ve decided that you want to go on vacation. You have packed the car, got the snacks, boarded the animals, got the mail and newspapers put on hold. Your destination, Disney World in Orlando, FL. You have your vision, but you haven’t looked at all the small goals that have to be met: 1) Are you driving straight through? 2) If your going to stop along the way, where? 3) Did you book a hotel along the way? 4) Are you going to sleep in the car? 5) Did you book a hotel in or around Disney World? 6) Can your car handle the trip? 7) Can you afford the expenses to go to Disney World? 8) Do you have enough gas?
Taking off looking for a home without getting prequalified is just like jumping in the car and heading for Disney World without checking the gas and looking under the hood. Once you check out your car you might find that it won’t make the trip so you change your destination to Sea World in San Antonio, TX and make it a day trip.
Getting prequalified will make your home buying experience go a lot smoother. The lender will be asking you specific questions regarding debt, income, etc. Gathering the information they will need may take you some time to find. Having your taxes, and banking records at your fingertips helps a lot. Their guidance on your finances will help you determine the price range you can afford. Most sellers will not even consider and offer unless they have proof of financing or funds available (bank statement for cash buyers). By taking this step…..you will be ready to search homes in your price range and make an offer with your REALTOR right when you find the house you want to call home.
Jack and Jill both felt a little bit like their friend Patience Muffet. See Patience was really afraid of spiders and if she thought one was even coming close to sitting down beside her…she would get scared and run away. That’s how Jack and Jill felt….scared…were they financially ready????????? They weren’t ready to find a lender just yet so they decided to keep reading, they eagerly awaited the next check point entitled:
Jack and Jill Choose a REALTOR “The Home Buyer Checklist You’ve Been Looking for (3 of 15)
We hope you’re enjoying our series and that it helps you on your way to…………………..
Live Life to the Fullest,