Don’ t Get Caught House Shopping With an empty“ Wallet!”
By: Marc Elliott
melliott @ elgloans. com Encompass Lending Group
Ever go shopping and find that absolutely perfect thing you just had to have? Maybe it was clothes … Maybe it was a tool … Maybe it was the toy your kid has been bugging you about for months …. Then you look in your wallet and see nothing – no cash... no cards … not even an IOU note from your friend who owes you some cash.
As you look around, you realize that you’ re at Wal Mart on Black Friday and there’ s only one of your coveted purchase on the shelf. The person next to you shoots you a devilish grin, picks up your prize and sprints to the checkout. As you think of all the things you wish would happen to them on the way to the checkout, you find yourself wishing you’ d come to the store more prepared.
That’ s exactly how it feels for unprepared buyers in the real estate market right now. They may as well have shown up with an empty wallet. Houses don’ t sit for long in League City or the surrounding area. Stories of homes selling in just hours are common. There are a ton of buyers out there trying to buy a limited supply of homes on the market. Time and time again, buyers are losing the home of their dreams to another buyer because they came to the market unprepared.
How do you avoid this regrettable situation? It’ s really pretty simple. Before you head off to the internet or get in your car to find your dream home, contact a reputable lender to get a preapproval letter. It seems so simple, but a surprising number of people skip that step.
The natural question is how to tell which lenders are“ reputable?“ The first indication is how much effort they put into determining that you’ re approved. That approval letter is only as good as the information the loan officer verifies. Home sellers want to see that the lender took the time to check your income, how much money you have in the bank, and if your loan will be approved through their system. If your lender doesn’ t ask for pay stubs and bank statements, they may not be giving you the reliable approval you need to win the house you want.
The best way to find a good lender is to ask your Real Estate Agent for a referral. Since they work in the market every day, they know which ones are honest, return phone calls in a timely manner, and will go that extra mile to help you get through the process. Friends’ suggestions and internet reviews are great, but Keep in mind those are based on one time experiences. Your Realtor will know best from having closed many transactions.
As the weather warms up and the real estate market does along with it, houses will start to fly off the market even faster. Don’ t miss out on a great house just because you came to the Black Friday Sale with an empty wallet.
You may have awesome credit and an incredible job, but without something in writing from a lender saying you can get a loan, none of that matters. You may as well be unemployed with nothing in your pocket but lint. An approval letter from a reputable lender makes you stand out as someone who can actually buy your future castle.
17 MOMENTUM / May 2018