Get that prequalification first

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.