The Importance of the Pre-Approval

"Are you currently pre-approved?"

Anyone that has attended an open house or spoken to a realtor knows this question all too well. Most home buyers these days start their search online to get an idea of the home style and locations. However, the first step should be figuring out your budget. Why waste time looking at homes that you are not qualified to buy or looking into neighborhoods that fall below your purchase power? 

My biggest reason to get your pre-approval is an emotional factor. It really upsets me when buyers spend time looking at houses that are way outside of their price range and then get discouraged when they find out that they can't afford to buy it. Buying a home should be an exciting experience regardless of if it is your first home, a second stepping home or your dream house. 

Lastly, if you're considering buying a house but are not ready yet. A lender can definitely help point you in the right direction. They can tell you which debts to pay and which ones you should leave alone. If you're considering purchasing house, contact me and I'll put you in touch with my preferred lender and they will begin guiding you to your pre-approval! 

Advice to First Time Home Buyers

Here are a few tips for First Time Home Buyers 

 

1. MAKE A LIST  - Make a short list of items that your future house must have. Try your best to keep these items as realistic as possible and feel free to check the affordability of these amenities with your real estate expert. Print this checklist and bring it with you to showings that way you can easily evaluate if the property is right for you. 

2. LOOK AT ALL EXPENSES - Most buyers only focus on the P.I.T.I (Principal, Interest, Tax & Insurance) payments of the house but you should also look into the average cost of utilities, cost of commuting and upgrades. Feel free to request quotes for upgrades and repairs during the escrow process. Budget all of these expenses and evaluate if you can afford the house. 

3. CC & R's - If the property you're interested in is a part of a Home Owners Association, be sure to review all the Covenants, Conditions and Restrictions. These documents have set fourth the rules of the complex and those rules range from pet restrictions to guest parking rules. I would strongly suggest getting involved in the HOA Board so that you can voice your opinions and contribute to the overall well being of the association. 

4. INSPECTIONS - Be sure to conduct the proper inspections for your desired property. A general inspection is always recommended to get a feel for the property condition and to get an idea of what type of specialists you should hire to inspect the property. If you do not know any inspectors, feel free to ask your realtor. 

5. THINK RE-SALE - You might plan on living in your first home for only a handful of years so be sure to check the desirability of the home. Think about your projected target audience. Is the property located in a good or bad school district? Is it located on a main street? How many units in your building are owner occupied and how many are tenant occupied? Upgrades and repairs can always be done to the property but the location is by far the most important.