Get that pre­qual­i­fi­ca­tion first

Home - Santa Fe Real Estate Guide - - THEMASTERGARDENERS MORTGAGEMATTERS - JIM GAY

This is im­per­a­tive: home buy­ers should be­come pre–ap­proved for a mort­gage loan prior to look­ing at that first house. The way it’s al­ways been done is no longer tried and true. In past decades, you de­cided to stop rent­ing, you called a Re­al­tor and had a 20-minute dis­cus­sion about how much you felt you could af­ford and the neigh­bor­hood you loved and be­fore you knew it, you were in the car to be­gin an ex­haus­tive search. Days, months, years later, you fi­nally found the house of your dreams only to dis­cover you re­ally couldn’t qual­ify for the mort­gage loan. Why did we ever ac­cept this now-an­ti­quat­ed­way of con­duct­ing one of the most im­por­tant busi­ness trans­ac­tions of our lives? It was al­ways back­ward.

Never be­fore has Santa Fe real es­tate been so com­pet­i­tive. Ask any Re­al­tor and you will be told a story sell­ers have only dreamed could be true. Homes, in 2018, come on the mar­ket and in­stantly sell­ers are re­ceiv­ing mul­ti­ple of­fers. Con­sid­er­ing mul­ti­ple of­fers in­volves much more than just ac­cept­ing the high­est price. In this sit­u­a­tion, sell­ers, and their Real­tors, put the pre­qual­i­fied of­fers on the top of the pile and those­who have not both­ered to do soway down on the bot­tom, even if their of­fer is higher. Why? Be­cause­while they are wait­ing for that im­pres­sive of­fer from the yet-to-be-qual­i­fied prospec­tive buyer to go through the qual­i­fi­ca­tion process, the pre-qual­i­fied buyer has moved on.

Pre-qual­i­fy­ing for your mort­gage loan is your only hope of com­pet­ing with Santa Fe’s many cash buy­ers. Cash talks! We all know that is true. But a pre­qual­i­fied prospec­tive buyer runs a very close sec­ond. Sure, you still have to go through a loan process, but you could be talk­ing about a dif­fer­ence of weeks as com­pared to months.

What does pre-qual­i­fi­ca­tion in­volve? What will you need to pro­vide? How long will it take? How do you choose your lender? It is not that dif­fi­cult. Call a qual­i­fied mort­gage per­son and meet. De­liver your tax re­turns, paystubs, and bank state­ments and com­plete the loan ap­pli­ca­tion. Say that you want a pre­qual­i­fied ap­proval.

If you are new to Santa Fe or to the real-es­tate world, a knowl­edge­able mort­gage per­son can in­tro­duce you to a hard­work­ing Re­al­tor or sev­eral to in­ter­view. Be smart. Santa Fe homes are very de­sir­able to fam­i­lies from all parts of the U.S. Be ag­gres­sive and get qual­i­fied for a mort­gage, then at­tack the home mar­ket and find your home.

Jim Gay was a real-es­tate bro­ker for 20 years and has been a con­sul­tant to For­tune 500 com­pa­nies. He is cur­rently a bro­ker/ owner ofThe Mort­gage Place, Inc. (505986-9080) and can be reached at jim@ jim­gay­home­m­o­rt­gage.com.

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