Best Financing: A 3-Point Plan

Buyer Beware

When buying a home, many people jump straight into house hunting. However, experience shows that this should actually be one of the last steps if you want to get the most home for the least money. Securing the best financing should come first.

This guide outlines 3 crucial steps to help you lock in the best financing rates for your home purchase. You’ll learn where to ask, what questions to raise, and how to navigate the process to your advantage.

3 Critical Questions to Ask

When choosing an agent to help you find a home, make sure to ask these important questions:

    1.    Can you help me get quick, easy, and FREE mortgage preapproval?

    2.    Can I access special low down payments, monthly payments, and interest rates?

    3.    Will I get advance notice of listings that match my homebuying criteria?

These answers can save you time, money, and stress, giving you an edge in your home search.

1. Get Preapproved for a Mortgage

Getting preapproved for a mortgage comes with many benefits, including peace of mind during house hunting and protection against rising interest rates.

Preapproval is quick and easy, with no cost or obligation. Mortgage brokers can provide you with written preapproval, which is more solid than verbal approval—it’s like having money in the bank. It involves completing a credit application and receiving a certificate that guarantees you a mortgage up to a specific amount.

With preapproval, you won’t need to scramble for financing at the last minute. Plus, if interest rates rise, you’re locked in at the preapproved rate. If rates drop, you’ll get the lower rate. It’s a win-win!

2. Receive Preferred Access to Special Low Financing

Agents who handle many real estate transactions often have strong connections with lending institutions. These lenders may be eager to work with the agent’s clients, offering better rates and terms.

This can make owning your dream home more affordable, with lower down payments and monthly costs. For many buyers, this means they can own a home sooner than expected.

3. Use a House-Hunting Service

Many agents offer a house-hunting service to make finding your ideal home easier. You provide a brief description of what you’re looking for—such as the number of bedrooms, price range, and neighborhood—and receive advance notice of homes that match your criteria.

This service gives you a competitive edge, allowing you to learn about homes before other buyers do. With early access, you may even have the opportunity to negotiate a better price.

You can drive by the homes on your own to narrow down your list, then let your agent know which ones you’d like to see in person. It’s a simple, efficient way to find the right home.