As a Realtor, I have the job of facilitating what will most likely be the largest purchase you make in your life. Still, people come to me because they want to see a house. Some of these people get a little frustrated when I ask them what they are pre-approved for, and what they are comfortable paying for a home. Does this not seem like a legitimate question to you? If you ask me to walk you through a $250,000 house, I need to make sure that you can pay for that house. Also, as I have said before, inventory is very low right now in our Louisville housing market. If you see a house that you like, there’s a good chance that someone else likes it too. Who do you think will win between these two people? The home buyer that likes the house, or the home buyer that likes the house and has proof that they can pay for that house?
The main reason that most real estate transactions take 30 to 60 days to close is because the financing part takes time. There are interest rates, bonds, ratios and all kinds of confusing stuff that has to be figured out. This is one of many reasons why you should apply for a mortgage before you ask me to show you a house. The mortgage you qualify for will depend on your income, your debts, and your credit history. The lender has to analyze all this data in order to give you a maximum budget. How do you know what the bank will give you? If you don’t ask, you won’t know, and consequently we could be looking at a bunch of $250,000 homes when you only qualify for $150,000 mortgage. That is no bueno.
The mortgage pre-approval process doesn’t take a long time, but it is important. To me, most lenders are looking at the same interest rates as everyone else. The difference comes in fees, service, and communication. These same things will determine whether or not you have a good experience. If you don’t know who to call for a mortgage, don’t worry. I work with local mortgage professionals on a daily basis, and I can certainly recommend some people that are dedicated to serving their clients. Call, text, or email me if you want to get started on your home purchase. If you just have questions about the home buying process; I can answer those too!