Should you talk to a loan officer before you look at houses?

Most of us have bought a car, whether new or used, at one time or another and it’s usually a pretty substantial purchase. When it comes to the affordability factor we all have some idea of what we can afford and then most of us  try and get the best deal on their auto loan and talk to our bank, credit union or whatever type of financial institution we bank at.

Sometimes buyers just simply use the in-dealership financing department and walk off the lot in their new car. So why do we all seem to go about this process backwards when we go to purchase a home which is by far our largest purchase and most important asset?  How many of us, present company included, have gone to pick the home first and then tried to secure financing for the purchase?

When I bought my first piece of San Diego real estate, this is exactly the way I went about it. I thought to myself, “I’m sure it’s like buying a car but probably a bit more difficult, but how much harder could it really be?”  Did I ever find out the answer to that question and so fast that it made my head spin.  It’s nothing like buying a car and not to mention that there’s no financing department in some office in the back of the property.

Just the amount of paperwork and documents that are required and must be produced to even be considered for a loan nowadays is mind boggling. I don’t know about all of you out there but even for me it takes me a bit of searching to find some of those important documents needed and I live in a small place and consider myself somewhat organized.

I’ve bared presence to that special moment when a client finds that one home that’s a perfect fit, beautiful, in great condition and in a great area and then go to acquire financing only to find out that it’s out of their reach due to their alotted loan limit. That’s a heartbreaking situation that no one should have to go through. Whether you’re buying or selling a property, real estate is an emotional process already and you shouldn’t expose yourself to additional emotional torment.

My advice to anyone who’s is seriously looking at homes in hopes of purchasing is to talk to a loan officer. If possible to talk to a few of them because like anything else you should shop around a bit.  If for nothing else shop for customer service. I’ve seen situations when getting ahold of the loan officer is all but impossible and that can add costly delays when buying a home.

If you don’t have the names or contact information for anyone who works in home financing talk to your realtor because I’m sure they know a couple of loan officers they might recommend based on previous results. I know I have the names and numbers of a few that I know that work hard and give great customer service.

So if you’re someone who’s, “just looking” , I encourage you to do so. I’d encourage you to go out and drive the neighborhoods on different days and different times. Get a feel for the community, go to some open houses see as much as you can.

When you feel that you’re ready to take that all important step of buying that next place to call home, not only should you contact a realtor but I would suggest that your second phone call be to a loan officer. Not only will this save you time and money by knowing and looking at properties that fall into your purchase criteria but it could very well save you a more costly emotional trauma that no person should have to go through.