Has ever happened to you? You’re out with friends and decide to grab dinner. There’s a new place in town you’ve heard is fantastic. Rave reviews, amazing cuisine. Everyone’s excited.
You drive over, pay for parking, and sure enough, there’s a crowd. The atmosphere is perfect, the menu looks incredible. Mouths water, you can’t wait. You step up to put your name on the list and the hostess says:
“Name for your reservation?”
“Reservation? I had no idea they were required!” Awkward apologies. They’re booked and you’re out of luck. Not even a seat at the bar. It’s embarrassing. Your friends are disappointed. So much for your recommendation.
This was almost a reality for my wife and I. We had just moved here from Austin, TX and we had been staying in a month to month rental and we had been there almost a month so it was time to get something we could call our own. I was renting an office downtown with the option to buy and we had sold our home in Austin but we still owned a rather large east austin office space that we were renting out. Well, we found our dream home and it was definitely in our price range and me being a realtor I knew what our credit was so I decided to forgo the pre-qualifying. BIG mistake, apparently some things had been put on my personal credit instead of under my business (their mistake not mine!). When I went to do the mortgage the loan officer looked at me and said “Are you sure that you should be trying to take on that size mortgage right now?” Needless to say we finally got it all straightened out but it was really embarrassing for a couple of weeks. So don’t listen to anyone, not even the voice in your head saying you really can do all of that later.
It’s not so different when you’re thinking of buying a home and you haven’t spoken to a mortgage professional in advance. You can search, find the right home, negotiate a contract… then uh-oh. You find out you aren’t qualified.
If you’re thinking about beginning a home search soon, let me help you avoid disappointment. You’ll get a picture of your credit score, the type of rate you’d pay, plus get the chance to correct any errors or problems on your credit report. A pre-qualification letter can have a direct impact on your ability to negotiate, too.
Would you like a list of mortgage professionals I know and personally trust? Just [email me at Mike@cribbinrealty.com / drop me a line at (636) 294-6061] and I’d be glad to send you one.