A lot of people who are interested in buying a home wait until they are ready to buy before speaking with a lender. It makes sense because most people think they should not go through the process of filling out paperwork or finding a bunch of financial statements if they are just going to buy later.
However, you might be hurting yourself in the long-run if you are not speaking with a lender long before buying a home. The goal of a lender is to simply get people ready to take on a mortgage, which means they are good at getting finances straightened out and hashing out monthly payment plans that are realistic and attainable.
If you are thinking about buying a home, take the time to speak with a mortgage lender even long before you actually want to buy, so you can get on the path to homeownership early on.
1) You should speak with a lender because you might actually be closer to being able to buy than you think. Many people think they have too low of a credit score or just don’t have the finances needed to put down a nice down payment. However, many lenders have noted how homeowners are surprised once it comes time to review everything because a lot of people are closer than they think.
2) You do not need perfect credit in order to purchase a house. Lenders will work with you long before you buy in order to help you boost your score. They will also be able to assist with getting you connected to federal loans if your score is on the lower side and can also assist with other options.
3) Lenders will be able to work with you to craft a long-term plan when it comes to actually building your credit. They often are able to help buyers the most who approach them one to two years before an actual purchase because they have the time and resources to address any big credit items with the prospective buyer. As a result, it is smarter to speak with a lender sooner than later if you are looking to buy and have bad credit.
4) Lenders will let you know about what to expect with the entire homeownership process. They will give you good information about the underwriting process and help set up a long-term plan. This is important because interest rates and the housing market can shift dramatically, so it is better to be prepared in the long term.
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Additionally, good lenders will be able to tell you how much of a down payment will be required, giving you more time to secure the money. Plus, more time gives you more opportunity to save more money, which can be a big deal when it comes time to purchase a house.
Keep the following four reasons in mind if you are thinking about buying a house, even if you do not have any immediate plans to do so. Working and speaking with our lenders early on gives you time to plan and prepare and gives them a chance to help you with a long-term strategy tailored to your particular situation. This can be a big help if the housing market shifts dramatically.
Are you interested in speaking to our lenders before purchasing a home? Call the Reed Team today at 949-392-6400!