Are you ready to buy the house of your dreams? Although individuals eagerly wait for this moment, they can’t help but feel baffled when your journey for buying a home in Valdosta eventually begins.
Most homebuyers aren’t exactly sure about the way in which the procedure evolves for buying a home in Valdosta. Hence, they start hesitating about which professional to contact at the onset of the process, whether to consult with a bank or a realtor.
There is a vast choice of real estate groups, such as Mercer Hughes – Valdosta realtors, representing buyers in the local market.
We hope the following information helps you solve the dilemma.
Why contact a lender first?
Setting realistic expectations is the key reason why many homebuyers prefer getting in touch with a lender instead of a realtor first. Plenty of individuals end up disheartened after finding the perfect house just because their financial situation isn’t favorable enough to make them eligible for the mortgage they need.
Therefore, pre-approving for a loan is what homebuyers in Valdosta are advised to do before getting engaged in the house-hunting process. Mortgage pre-approval refers to the procedure where moneylenders comb through applicants’ finances in order to find a loan that fits their financial situation. Hence, you’ll be expected to provide the necessary paperwork, such as your credit score, financial history, bank statements, income, will refinancing a home twice affect credit, etc.
Based on the provided documents, the bank will devise a comprehensive plan to improve your eligibility for getting a home loan. In case you’re deep in debt, the plan will include a strategy to pay off most of the debt in order to boost your credit score. Most moneylenders don’t require an impeccable credit score on the part of homebuyers but a minimum of 600.
Another aspect that banks clarify to mortgage applicants is the amount of down payment they’d be required to pay for a particular loan. For instance, some types of loans require a minimum deposit of as much as 3, 5 percent, which sounds favorable to most applicants. However, making a larger deposit reduces the sum of the monthly installments and minimizes the financial risk. Read here https://www.thebalance.com/choosing-a-down-payment-315602 about the ways in which down payments work and how much you’ll be asked to pay.
By contacting the bank first, homebuyers have an opportunity to form their expectations of the home buying process. Since financing is an indispensable aspect of purchasing a new home, it’s important to commence the application procedure on time to avoid unnecessary delays.
Why contact a realtor first?
While some homebuyers talk to banks first, others prefer contacting a real estate agent before applying for a mortgage. Besides assisting clients in finding an ideal house, realtors help them select an established mortgage lender as well. These agents collaborate with most of the local lenders, hence being able to refer those with the best records.
Even though some homebuyers don’t trust the referrals of real estate agents, there’s no reason to doubt their choice. Keep in mind that the Real Estate Settlement Procedures Act (RESPA) bans realtors from signing an agreement with moneylenders for the purpose of getting financial compensation every time they recommended them to homebuyers.
Realtors also assist homebuyers in making the right choice of lenders, based on the type of loan one applies for. These professionals direct clients to local banks and lenders, which provide mortgages that match their requirements.
In addition, realtors advise homebuyers on the most appropriate time to purchase a house. Having such an agent by your side prevents you from choosing a bad timing to invest in a property without considering the trends in the real estate market. In contrast, a realtor would patiently wait for the right moment while being your rock throughout the entire process. See the following this link to learn about the right time for buying a home in Valdosta.
Therefore, homebuyers in Valdosta are encouraged to hire a realtor they trust and feel comfortable with. It’s vital to conduct the interviews in person instead of over the phone, as you’re supposed to assess the behavior and professionalism of candidates.
Final word
The ultimate decision is entirely yours for buying a home in Valdosta.
Think carefully before picking up the phone!
