As you started out to search for your next home, you probably went through the recommended step of getting a mortgage pre-approval letter from your lender, or from a website online (websites like Finance Hunt delineate these concepts well). But, if you have been looking for more than 30 days, have you touched base with your lender to be sure that the approval is still valid and that they will issue an updated letter when you find that perfect, dreamy New Orleans home?
I’ve been working with a wonderful young man who is looking for his first home. He was approved for a loan with monthly payments he felt comfortable with and we started the search several months ago. Unfortunately, we are in a price range with some seriously stiff competition for homes that are not run down or needing complete renovation. We’ve kissed a lot of frogs and haven’t found a prince (or princess, in his case!) yet.
So, last week a great little house came on the market. It’s in the area he wants to live in. It’s had numerous updates and upgrades and is in move-in ready condition. It’s priced just right and within his budget. Perfect, right? Wrong.
Almost immediately, there was an offer to purchase made by another buyer. OK, well that’s not so bad. We can still write an offer and hope that our is better, right?. Wrong.
The lender required updated financial information before they would prepare the seller requested approval letter to include with an offer. Bottom line…my buyer missed out on a terrific home!
Although I nag remind my buyers to keep their mortgage approvals up to date, sometimes it gets put on the back burner. With the rapid changes in the financing world, programs that are here today may be gone tomorrow. If more than a month has gone by without you talking to your lending professional, you may not be financially prepared to write an offer on that dream home.
If you are considering purchasing a New Orleans home, contact us for a referral to a mortgage professional who can keep you on track, current with all of today’s lending programs and ready to scoop up the prince or princess you’ve been waiting on!