While it might look and sound counterintuitive at first glance, it could actually make perfect sense.
Instead of assuming that home loan financing is just a cumbersome, yet mostly guaranteed step toward the American Dream, understand that it will dictate the home shopping process itself.
After all, without a mortgage, there’s a good chance you won’t be getting a home unless you’re one of the few individuals out there able to finance the transaction with cash.
Don’t Assume You’re Good to Go on the Mortgage Front
- Close the real estate apps and dig into your financials
- To ensure you actually qualify for a mortgage
- Only then should you start searching for a suitable property
- And do this before you speak to any real estate agent or lender
There’s a reason I’ve written so many articles in the past about what to do and not to do before applying for a mortgage.
I’ve recommended renting before applying for a mortgage, avoiding credit card use, knowing which type of mortgage you want before speaking to a lender, paying down debts, and more.
I brought up all these important points because they are often overlooked, and aren’t something one can resolve in a matter of days or weeks during crunch time.
And so focusing on these potential pitfalls early is key to actually getting the house you want.
Unfortunately, in practice, would-be buyers seem to be too quick to launch the Redfin or Zillow app on their smartphone instead of heeding such advice.
Aside from complicating matters when it comes to mortgage loan financing, it could completely jeopardize the deal, especially in a competitive housing market such as the one we’re experiencing now.