First Time Buyer -Dont put the Cart before the Horse

As I tell all my clients don't put the cart before the horse. In other word don't go shopping until you have the cash or you've secured financing. A lot of people do this which can sometimes backfire and lead to frustration and disappointment.

First of all, say you start looking and find a house that you really like. It fulfills all of your needs and now you set out to secure financing but in the meantime the house of your dreams is being shown to other potential buyers who just happen to already be pre-approved.

That particular property just happens to be someone's dream home and they are already pre-approved. A pre-approval letter from a lender carries a lot of weight, because it shows that the buyers are ready, willing, and most of all able.
Don’t confuse getting pre-approved with getting pre-qualified, the latter carries little weight. A pre-qualified homebuyer has merely received from a lender an estimate of the size of the mortgage loan for which the homebuyer may qualify. None of the pre-qualified homebuyer’s finances have been verified and this can spell trouble at the closing table if the loan falls through.

What happens is while you're trying to secure financing the pre-approved buyer has secured your dream home. So with that said, it is a good practice that you come prepared with your financing in place. It will make you more effective and more confident during your buying process.

If you need to acquire financing, find out where you stand before you buy please feel free to contact My First Michigan Home we special in the First Time Buyer process.

Christopher Shaw
CEO
My First Michigan Home
16250 Northland Driver
Ste 242
Southfield, MI 48075

www.Myfirstmichiganhome.com

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