Home buyers need a loan before buying a home in Waxhaw.
Despite what some commercials these days may lead you to believe, this is not rocket science!
Most home buyers know that unless they are paying cold hard cash when buying a home, they will need a loan, a.k.a., a mortgage, in order to complete the sale.
What every home buyer does not know is that you actually need a loan before you start looking at homes to purchase.
To be more precise, home buyers need to be pre-approved for a loan to purchase a house by a certified lender before any serious consideration can be made for purchasing a home.
There are three reasons why home buyers need to be pre-approved for a mortgage prior to shopping for a home.
First, without being pre-approved for a loan, home buyers do not know how much money they will be able to secure in the form of a loan when purchasing a home.
If a home buyer has $25,000 saved for a down payment and qualifies for a $225,000 mortgage, she should only look at homes her Realtor® believes can be purchased for $250,000 or less.
Second, a home loan pre-approval lets the buyer know how expensive a home he or she can truly afford based on the amount of his or her down payment, the prevailing mortgage rates, monthly payments, available financing options, and other factors..
To use a $250,000 house as an example again, if the home buyer’s monthly payment will be $1500 and he can only afford - or only feels comfortable with - a $1200 payment, he may need to consider a less expensive home.
Additionally, if the buyer is comfortable with a higher monthly payment, he may be able to consider homes at a higher price point.
Finally, in the current real estate market in Waxhaw, North Carolina, and throughout much of the Carolinas, we are in a seller’s market. This means home buyer demand exceeds the number of homes currently available for sale.
A quick review of Economics 101 will remind you about the rule of Supply and Demand.
When demand is higher than supply, price and competition among buyers increases.
In today’s real estate market, most home sellers will not consider an offer to purchase their home without confirmation from the buyer’s lender that the buyer is qualified to purchase their house.
If you are considering buying a home in Waxhaw, the first thing you should do is contact a local Realtor® who knows the market for an initial consultation and ask him or her to refer you to at least two or three reputable lenders who will have your best interests in mind.
For more tips on buying a home in Waxhaw, call, text, or email Bill Cormier and Jimmy Grappone — CG Group at Skyecroft Realty — today!
http://jimmy.cggrouprealestate.com/sell.php "CG Group at Skyecroft Realty is committed to Simplifying Real Estate. Your referral is free to give, but it is priceless to receive. Who do YOU know who is planning to buy or sell a home?"
Author:Mark Hendel - Broker In Charge Phone: 704-909-8688 Dated: January 25th 2018 Views: 574 About Mark: Mark Hendel
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