Buyer Preparation
By Jim Palmer Jr.

Most buyers in this information-age seem to be prepared in terms of knowing what inventory is out there on the market because of the quick and easy availability of information, but most are ill prepared when it comes to knowing whether they actually qualify to purchase any of the homes they have been eyeing for months on the internet.

The vast majority of these buyers finally realize that they now require some assistance in this stage of their search. But once they connect with a real estate professional, they may realize that they have skipped the most important step in that process, that of loan qualification. “Show me the money!” will be the first question an experienced professional will ask the buyer. “Where is the money coming from? Do you have any money saved up? Do you need bank financing and have you made that contact? What price range do you qualify for and what type of loan will you be using?” This barrage of questioning may seem too personal and too intense for some just starting out, but these questions must be answered prior to beginning your real search.

“I’ve already found a couple of houses that I’d like to look at today,” says the unprepared buyer. At this point in the conversation you can expect the experienced professional to delay the request for taxi service and property tours until you have proven that you even qualify for such a purchase.

If you are a potential new buyer and are reading this article, you can put yourself ahead of the average buyer by doing the financial preparation well ahead of time. Talk to an experienced loan officer who will take the pulse of your financial status in order to pre-qualify you for the purchase that will suit your current financial ability. That may not mean that it will qualify you for the purchase that will suit your wish list but it will certainly give you the ability to be realistic once you start searching in the category that fits your actual means.

The loan officer will be happy to provide you with a pre-qualification letter documenting this first vital step, which will be a welcomed by your Realtor® who will now enthusiastically shuttle you to see available homes you actually qualify to purchase. Also, if you want your broker’s full attention, don’t be reluctant about signing a Buyers Representation Agreement guaranteeing they will get paid.

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