Buying a House – Show Me the Money!

Now that you’ve discovered your big reason WHY to buy a house, you need to go about the business of finding the money to pay for it.

Sure. Some people have a ton of cash sitting in their bank account.  I’ve actually had clients that have bought homes with “all cash”, meaning that there was not mortgage process.  When the time came to go to settlement, they bought certified funds in the hundreds of thousands of dollars and bought the house.

Not everybody can do that and most tax consultants would probably tell you that you  were crazy even if you could.

The Mortgage

So, you need to go out and get a mortgage.  A lot of people are tuned in to this already.  Everyone has heard about being “pre-approved”.  What this really means, though, is that some loan officer has gotten some basic information about you. This loan officer will get your FICO score.  They may do a little other checking but they basically take your word on your debt and your income.

They crunch a few numbers.

Bingo! You’re pre-approved.  (not really, but people like to say you are)

The only problem is that when the time comes to write the offer on the house you want to buy, that same loan officer will need to document everything and, I mean, everything about your financial life.  Employment, bank accounts, investment accounts, tax returns…everything.

The Loan Officer Really Does Matter

What kind of hoops you have to go through and how much credibility this “pre-approval letter” has really depends on the experience and knowledge of a good loan officer.  There are plenty of guys (and gals) out there trying to get your business. A lot of them shouldn’t be in the business.  That’s why it’s important to pick a good one.

Of course, a good Realtor (someone like me) will have strong relationships with a loan officer who will:

  • tell the truth about a person’s ability to get a mortgage
  • work with a person to get the best possible terms and best loan program
  • be able to get all the way to the finish line with the borrower so they can get the keys to their new home.

About Ken Montville

Ken Montville is a Realtor® and Associate Broker with RE/MAX United Real Estate in the beautiful Maryland Suburbs of Washington, DC. He has been selling nice homes since 1999. Way back in the 20th Century.

When Ken Is not doing the real estate thing he can be found all over social media in places too numerous to mention and he listens to jazz, reads a little (mostly non-fiction), hangs out with the Rotary Club of Parole (Annapolis), MD and can be found blogging at MDSuburbanHomes.com