Why is speaking to a mortgage loan originator the first step in the home buying process?
Are you like some people who believe that the first step in purchasing a new home is talking to a real estate agent?
It is grocery day in your house. The cabinets are empty the refrigerator contains a bottle of ketchup, outdated salad dressing and a plastic container of mystery leftovers.
You sit down at the table and begin making your grocery list. You walk through the house looking in cabinets making note of needed items.
You check the bathroom, laundry room and even the cleaning cabinet to make sure you have listed everything you need.
This process took you an entire hour, but you have your grocery list ready.
You round up your family and together you drive to the grocery store for a 2-hour grocery shopping trip.
Everyone is in masks and rubber gloves making sure to stay 6 feet apart from the shoppers around you.
Your list was so big that you now have two carts full of groceries.
It is now time to go to the register and checkout.
The cashier completes the checkout process and asks you how are you paying?
Cash, debit or credit she inquires…
Now imagine that this whole time you knew you did not have enough money in your account to purchase the groceries. You do not have a credit card and all you have in your wallet is $15.
Does going through this 3-hour process make sense?
Would your family be frustrated with you if this happened?
Was it a waste of time?
This may seem like a far-fetched scenario.
It is however similar to driving around for hours, even days, and multiple weekends looking at homes without knowing how much home you are qualified to purchase.
The Home Buying Process Step # 1
The first step to the home buying process is speaking to a licensed loan originator.
A good real estate agent knows that it is most likely a complete waste of their time and yours to look at homes unless you have completed this step.
When I meet with individuals and families looking to purchase their first home I do a rent versus buy analysis.
Think of this step like using the Waze app to travel.
You type in the desired destination and the app plots out the best way to get there. It even notifies you of potential issues like police, road hazards, and any delays.
A rent versus buy analysis breaks down what you can expect to pay out in terms of loan and rent payments and compares this amount to what you can expect to earn in equity.
During this first step to homeownership, we will discuss your goals, concerns, the timeline for purchasing, and answer any questions you may have about the home buying process.
We will also discuss different types of loan programs available and begin preparing for Step 2 of the home buying process “The Loan Application”.
Mortgage Loan Originator In Virginia And Maryland
Rod Ferrier is a licensed loan originator in Virginia and Maryland.
He is a U.S. Navy Veteran, father of four and began his career as a loan officer in 2002.
He specializes in assisting his clients to navigate the winding road of homeownership.
His clients include Veterans, first time home buyers, families looking to purchase a bigger home, as well as empty-nesters seeking to downsize.
His background in financial planning provides his clients with the opportunity to benefit from the wealth created by strategically purchasing the right home.
CLICK HERE to access his calendar to find a time that works best for you.