Should You Follow The Recommendations Of Your Pre-Approval Letter?
If you\’re like most average homesbuyers, you\’re probably following the recommendations of your mortgage company\’s pre-qualification letter to know what you can afford to buy. How much home you can afford depends on several factors such as your income, expenses, type of financing, roommates, and more. Likewise the full price range of possible homes you can qualify for will depend on several factors.
Rather than confining yourself to viewing homes within a narrow price range, try looking at homes above and below your suggested price range. Without spending adequate time searching the market, you won\’t learn what kind of house and community you want to live in.
Some home buyers blindly trust the recommendations of their Realtor and only check out properties in a narrow price spread. After these homebuyers begin to live in their new property, they\’re disappointed to uncover the fact they could have offered on nicer homes with larger square footage if they had only reorganized their finances and taken advantage of creative financing options. If these homebuyers had tried an adjustable rate mortgage (ARM) rather than a fixed rate mortgage, they could have purchased a better property in a better school district.
Make sure you tell your Realtor or loan agent bed show you properties in a broader price range. Try seeing as many properties and neighborhoods as you can. Sadly, it\’s not uncommon for many Realtors to drive you only to properties up to your maximum price limit. This would be comparable to you going to the beauty salon for a new hair style and your hairdresser asking you to choose a new style without looking at the latest hair magazines.
This predicament mimics the process of buying a home. Take the time necessary to study all the available home options and financing programs you\’re eligible for. If you don\’t find what you\’re looking for, don\’t waste any more time switching to a different neighborhood. You might change your mind and decide to look at properties in a nicer community or higher quality school district.
You also could decide to spend less money on a house. Maybe $350,000 will fulfill most of the features you\’re looking for in a home. Instead of paying $475,000, you can invest the money in fixing up the property, live a nicer life, or put it into higher yielding returns.
It\’s important to check out a wide array of properties and communities before you finalize your decision on a home, neighborhood, or price range. Weigh all your options carefully. Compare all the benefits and features you get with each particular property. By following these home buying steps, you\’ll make a decision you can feel good about.
Learn more about Palo Alto homes for sale. Use a local Palo Alto Realtor and see what they can do for you.
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