Picture this. You're sitting in your home. You just filled out your loan application to your lender. You're waiting....waiting....waiting....DING!! You're computer, phone, tablet or whatever you use goes off. You are a future home buyer. You have done everything right,
establishing strong credit, saving for a down payment, following the market volatility shifting both upwards and downwards and now, finally, you are ready to buy.
For many people who rent, the question is, why do I pay for someone else's mortgage? That's an amazing question to ask with a simple answer. "I don't know why you would do that." You pay $1800-$2000 for a mortgage in Houston, which is honestly relatively lower given the constraints and inability for many to secure purchasing a home due to market craziness and an influx of buyers within a market with historically low inventory levels. You await the results of your loan application as if you are Augustus Gloop waiting for a Golden Ticket to Charlies Chocolate Factory. But...wait a minute. Even the best of those who follow these grand rules of preparedness sometimes fall victim to false hope. You do know who Augustus Gloop is...right? Let me explain.
What trips up a lot of buyers is their incapability of staying within a budget line perspective or lender qualification. It doesn't matter if you want a $500K home. If the loan officers who qualify you say otherwise and that number is $350K, you are not getting a $500K home without a sizable down payment. $150K to be exact. 99% of Americans don't have this level of cash liquidity. Do you? I have also literally seen many people divide $500K by 360 (30 years) and say, cool my payment is only $1400 monthly. Yes, it's true, some buyers actually believe this. It happened to me and a lender partner of mine just a short time ago. Wouldn't that be a dream if it were that simple?
4 things go into your house payment. The four components of a home loan are Principal, Interest, Taxes and Insurance. We refer to it in our industry is PITI. It is somewhat easy to devise this number by simply spending 30 minutes speaking with a mortgage lender and getting pre-qualified. Like I mentioned in the beginning. Augustus Gloop wanted nothing more than get in over his head in Chocolate. He eventually met his demise. Being pre-qualified, understanding what your payment will look like and having a REALTOR to guide you will help keep you honest to your search and protect your most important lifetime financial decision.
There is nothing more upsetting than not getting what you want. It's imbedded into our DNA as a child and never leaves us, even if we say it does (did). Viewing something with all the bells and whistles while leading to an excitement level that can only mimic a child trying cotton candy for the first time, is devastating when you realize you can't afford the home. You then begin searching for homes in your price point and everything seems underwhelming, yet you still purchase. I've stated so many times that I should have a sign in
my office, if you can't be both financially and most importantly emotionally prepared to purchase a home you are headed straight for regret behind door #1. So, back to the Golden Ticket. No, it's not an invitation to a daydream chocolate fantasy land hosted by a schizotypal personality disorder chocolatier, its your pre-approval ticket to buy your new home. Get started today.
You have 30 days after your hard credit pull to shop the market to find the best opportunity for you and your family with no extra credit damage. I partner with 5 of the best lenders in Houston. You can visit their website link by visiting www.htxhomesales.com, clicking preferred vendors and searching my preferred mortgage lenders.
The opinions shared and/or suggested are my own, and not necessarily shared by my brokerage. Contact me today for a brief consultation to see if the time to buy/sell is right for you.
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