Mortgage PreQualification…The First Step
June 30th, 2009 categories: Buyer Resource, Rohnert Park
“With Sonoma County Real Estate prices where they are, we want to start looking for a home. What is the first step?”
We agree the prices of Sonoma County Homes and Sonoma County Real Estate are really incredible. Many investors are finding they can negotiate prices which allow them to rent out a property for more than their monthly obligations and are actually cash flowing. This has not been seen in Sonoma County for 20+ years.
Many people think the first step in finding a home is to actually go out and look for a home. This is not a bad idea, but it is not the best. It does give you some sense of what is available and what a potential price of a home you may like will be. This is all good invormation, but there is a problem with this plan, one we see from time to time. Buyers will start the home search on their own, find a home they love and then call us.
In this market, we are finding many homes may already have an offer, some even have multiple offers. I called an agent just yesterday about a Rohnert Park home that was still listed as active, had just come on the market, and had 14 offers received. A counter offer had already been sent to one party, and the agent told me this property was gone as they had several qualified backup offers. This is the same story we are hearing with most Sonoma County Real Estate, the Real Estate market is HOT!
In the end, the buyers had some work left to do in order to submit a decent offer, but they were unprepared.
How can YOU avoid this problem?
The first step is to look like a serious buyer by getting Pre-Qualified or even Pre-Approved for a loan. Someone who is Pre-Qualified looks good to a seller as they have an idea of what they can qualify for. Someone who is Pre-Approved looks even better.
Pre-Qualification is a simple process where the lender will review your income, other monthly obligations and credit score. Once the lender has this information, they can give you a good idea of how much you qualify for on a loan, the potential interest rate, which will give you an expected monthly payment that you can afford and that the lender will approve. Pre-Approval takes all of this information and makes sure it has been verified with 1099’s, W-2’s, check stubs, bank statements, etc.
If you are a SERIOUS buyer and have not yet been Pre-Qualified or Pre-Approved, we highly suggest you take care of this immediately!
We have a great network of lenders who can help. Dave Raffi of Mission Hills Mortgage contributes to this website each Friday with a Sonoma County Mortgage Rate Update article can help you with all of your lending needs. Dave is a trusted lender and can be reached at 707.303.2933. Make sure you tell him that SonomaCountyGrapeVine sent you.
