When buying a house in today’s market, buyers are encouraged to develop a realistic budget before doing anything else. The feasibility of all the buyers’ “wants” from their wish lists can be determined by creating a realistic budget.
A mortgage banker can make the process of creating a realistic budget very efficient. Ideally this banker would be involved in the process from start to finish – the team effort portion of home buying or building. Bankers review the buyers’ credit, job history, current financial obligations and future employment data to establish a monthly payment that will allow them to purchase a home and be able to comfortably manage the new financial obligations of a home. When bankers look at credit files, they establish income and debt guidelines that are considered acceptable to underwriters as they begin to paint a picture of the loan.
After a budget is established, it’s recommended that buyers create a list of items listed in order of importance for them, such as desired home location, style and new versus used. Next on the list are more detailed preferences. Many of the typical items buyers consider include kitchen cabinets, countertops, appliances, room layout and dimensions, garage size, fireplace and smart technology.
When buyers have thoroughly considered the items most important to their family’s needs and how those items will affect their proposed budget, they can then shop for an affordable home with confidence, knowing their new home will include the features most important to them.
The mortgage banker will then create a document called a pre-qualification letter that buyers can use to negotiate with sellers. This document lets sellers know that, based upon the buyers’ current financial abilities, the sale will proceed after arriving upon a final price. This letter generally helps buyers get the most favorable pricing from sellers.
Realtors can usually recommend several lenders who have established relationships with them, and have also shown success in dealing with clients and closing transactions in an efficient and professional manner.
Hopefully buyers can now see how vital it truly is to begin their home-buying process with a realistic budget. The more comfortable the buyer is, the more successful the buying experience will be, which will subsequently leave the new homeowner happy.