December 11, 2015

Buyers: First Step in Real Estate ~ Find your Financing

Most people don’t go to a store without an idea of what they are shopping for and how much they plan to spend. Real Estate should be any different.

The best first step is always to speak with a mortgage resource. This could be a bank or a mortgage broker, whichever you prefer.

Generally the search for real estate starts with a need to move or a desire to invest. Either way, it is best to know what you can afford to do before you get started.

Of course, you can browse the web and see what’s out there, get a sense of what you want, and then talk to a lender. But it is rarely effective to start previewing properties before you know what you can afford.

There are so many nuances to loans these days and costs associated with a sale and your lender is the best source to accurately and effectively work with you to get pre-qualified or pre-approved.

The pre-qualification process is fairly simple and, generally, all the information you need to know is already in your head.  The pre-approval process is a bit more intricate and includes a credit check and financial information.

Regardless of what you choose, pre-qualification or pre-approval, it is best to start this process before you set out to preview properties.

Of course, the best reasons to talk to a lender first is that when you find the perfect property, the sellers will definitely take your offer more seriously if it is accompanied by a pre-approval. In fact, your offer is more likely to be accepted when a seller knows you can obtain financing.

There is also nothing worse than finding a perfect property only to find out you aren’t in a position to purchase it.

So, know before you go. Know what you want and know what you can afford.

Click here for some financing resources on Kauai or cut and paste: http://www.mykauaiproperty.com/financing.asp

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