Imagine walking into your dream home unprepared to make an offer. Because you haven’t worked with a loan originator yet, you may not know if you can afford it. You realize someone else might be more prepared than you and could land your dream home before you even talk to a lender. 

You could avoid the above scenario by understanding your loan options ahead of time. Consider these reasons for working with a lender before touring your next home.

Lenders Will Help You Set Realistic Expectations

Responsible homeownership is all about having a realistic budget. You want to feel secure in the negotiation process, not worried about whether you could stretch your finances a little further to get a deal done. 

Working with a lender ahead of time can help you set healthy budget expectations. They can give you an idea of how much your origination fees, title fees, and appraisal fees will cost. They can also explain how your down payment will impact your overall loan terms.

Pre-Qualified and Prepared to Make an Offer

Let’s revisit your dream home from before. This time you walk in having already talked with a lender, so you know the home meets your budget. You’ve also been pre-qualified for a loan. You can make an offer today before that other buyer shows up—and your offer is going to be taken seriously. It is, after all, backed up by paperwork that shows you’re financially able to proceed. 

While you’ll only receive estimated loan details when you become pre-qualified, it’s a detailed study of your finances that will impress sellers and real estate agents. You can expect lenders to ask to see your tax returns, W-2s, pay stubs, and bank statements when applying. 

Final Thoughts

Meeting with lenders early on in the homebuying process will keep you better informed and prepared to make an offer. 

Agents at Open Mortgage are eagerly waiting to discuss your home financing needs, including whether you’d like to get pre-qualified for a loan. Explore our website for more information and to get in contact with experienced loan professionals today.