The First Step Is Not Looking at Homes
- Lea Nunamaker
- Apr 18
- 2 min read
When you decide to embark on the journey of homeownership, it's essential to understand that the first step is not to start browsing listings or visiting open houses. Instead, the initial action should be to contact a Mortgage Loan Originator (MLO). Here’s why reaching out to an MLO 90 days prior to viewing homes in person is crucial:
Understanding Your Financial Position
Before you start falling in love with potential homes, you need to have a clear understanding of your financial situation. An MLO can help you:
Evaluate your credit score and financial health.
Determine how much you can afford based on your income, debts, and savings.
Identify any areas that need improvement to secure better loan terms.
Getting Pre-Approved
One of the most important steps in the home-buying process is getting pre-approved for a mortgage. This involves:
Submitting financial documents such as tax returns, pay stubs, and bank statements.
Allowing the MLO to assess your eligibility for various loan options.
Receiving a pre-approval letter, which shows sellers that you are a serious buyer with financial backing, in fact, some sellers wont even consider an offer without a
Pre-Approval letter.
Understanding Loan Options
An MLO can provide valuable insights into the different types of mortgage products available. This includes:
Fixed-rate mortgages
Adjustable-rate mortgages (ARMs)
FHA, VA, and USDA loans
By discussing these options early, you can choose a loan that aligns with your financial goals and homeownership plans.
Setting a Realistic Budget
With the help of your MLO, you can establish a realistic budget for your home purchase. This includes:
Understanding the total cost of homeownership, including property taxes, insurance, and maintenance.
Factoring in closing costs and other fees associated with buying a home.
Timing Your Home Search
By initiating contact with an MLO 90 days before you plan to view homes, you set a timeline that allows for:
Thorough preparation and understanding of the mortgage process.
Addressing any financial issues that may arise before you start house hunting.
Being ready to make an offer quickly when you find the right home.
Conclusion
In conclusion, contacting a Mortgage Loan Originator 90 days prior to viewing homes is a strategic move that lays the groundwork for a successful home-buying experience. By taking this crucial first step, you equip yourself with the knowledge and financial readiness necessary to navigate the competitive housing market effectively.
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