When working with buyer clients, one of the most common questions I receive is about the right time to approach a lender.
In my opinion, it's best to reach out to a lender as soon as you decide that you want to make a purchase. This is because even though you may have the desire to buy a home, it's essential to assess your financial readiness.
Are you aware of your credit score, and is it 620 or higher?
Do you have any outstanding debts that need to be paid off in order to qualify for a home loan?
What price range are you considering for your home search?
These are a few important questions that a lender can help you evaluate in order to obtain pre-approval. I consider pre-approval as the golden ticket to your home purchase. It's crucial to have a pre-approval letter before we start looking at houses.
To illustrate the significance, I often share my personal experience. Back in 2007, my husband and I were buying our first home. We had initiated our search about a year prior and had viewed several properties. I fell in love with a particular house that had a garden tub and was located in a great neighborhood. However, when the lender ran our credit, they determined that we didn't have enough credit history to secure a purchase. At that time, I was a young 20-year-old with no credit cards and a limited credit history. The lender advised me to obtain a gas card and make regular payments to establish credit history. Fortunately, we weren't in a rush to buy, so we decided to live with family and rented until we could improve my credit. Eventually, we successfully purchased our very first new construction home. If we had been in a hurry to buy due to our lease ending (or any other reason), we would have been out of luck.
The moral of the story is that you shouldn't postpone or delay reaching out to a lender. You don't want the pressure of waiting until the last minute or realizing you're not financially prepared to hinder your ability to secure the home you need or desire. A lender can offer guidance on how to improve your credit scores and help you achieve your financial goals. The best way to connect with a reputable lender is by contacting an agent who has experience working with top local lenders.
Reach me today for a consultation to assess your current situation and connect you with a suitable lender.