I have received calls from buyers – who “just want to look“. If you were that buyer and I showed you homes you thought you could afford, and later you find out that you cannot afford anything close to the purchase price.
When you talk to a lender, and lender looks at financial status, liabilities, debt, and income. With all that in mind, the lender determines how much of a loan you can be qualified for. The lender sends me the pre-approval letter and we look in your price point!
Imagine you think you can afford a home which costs one million dollars, and you look at those one million dollar properties, only to find out later that you are qualified up to $600,000. $600,000 is a far cry from $1,000,000 and the homes will be vastly different. This scenario will only set you up for disappointment.
If you don’t have a lender, I have a referral for you. It is generally a phone conversation, and then your Realtor gets a pre-approval letter in hand, and now you are off to the races!! You are looking at what you can afford, without disappointment.
One other consideration, and this is important. I do realize that housing prices have softened over the past few years. However, if you see a home priced at $1,000,000 - it does NOT MEAN that you can purchase it 30% off the listed price. In general, the listed prices of homes are in alignment with the local real estate market.
If you are considering purchasing a Newport Beach home for sale, and would like a buyer consultation, please contact me.