One of home buyer’s most frequently asked question is, “Should I talk with a bank before look at homes?” The answer to this question is YES! There are many reasons to talk with a bank and getting pre-approved before looking into your next home. By doing this, it will help you understand exactly how much you can afford. Everyone would love to own a million dollar home, but if you can only afford a $200,000 home then this purchase doesn’t seem financial smart. If you are a first time home buyer, talking with a bank before looking at homes is not only strongly suggested, but prudent!
Another important reason to talk with a bank before starting to look at homes is so you can understand all the costs that are associated with buying a home. There are many home buyers who truly don’t understand the difference between a down payment, pre-paid items, and escrows, which can be explained by any mortgage professional! These mortgage consultants are there to give you advice on the type of financing you should be looking to obtain and whether or not you should request the seller to contribute towards your closing cost, which is also known as seller’s concessions. To summarize, home purchases are no ordinary purchase, ask questions before you start acting!