GET PRE-APPROVED PRIOR TO LOOKING AT HOMES
There are several reasons why it is crucial to get pre-approved for your mortgage prior to looking at homes. Here are a few:
*If you work with a purchase price and fall in love with a home, you may not know what the monthly payment looks like taking into consideration that you will have to add taxes and insurance as well.
*If the home has multiple offers, you MUST have your financing nailed down in order to compete.
*Certain loan programs require specific down payment amounts, repairs, inspections, etc. If you are unclear on what product you are approved for and don’t meet a requirement, it will delay your transaction
*You should know what your estimated closing costs are expected to be and calculate the expenses of your purchase so that there are no surprises
ASK QUALIFYING QUESTIONS
It’s always good to ask questions about the home and the motivation of the seller. You may need to rule out properties because the terms can’t be negotiated. For example:
*When is the seller able to close/move?
*What repairs are needed?
*Have there been any offers?
*How long has it been on the market?
*How much are taxes? Utilities? Insurance rates?
*Are there easements? Covenants and restrictions?
*Does the complex have reserves?
*What do the fees include?
*Is the complex approved for financing?
*What is the owner occupancy?
*Are pets allowed?
*What is it zoned for?