When is the right time for people who are interested in buying to start talking to a lender? Many people worry about starting the conversation too soon, but I am here to tell you that it's never too early to get the ball rolling.
There are multiple reasons why starting the conversation earlier is better. First, you may find out that you don't qualify for a loan, so it's better to find that out sooner so you can work on the reasons why. Second, a lender can debunk any myths or misconceptions about homebuying and the mortgage process. Then you can be sure you have the correct information.
Third, starting early will help you be prepared with the right amount of money you need for the down payment, closing costs, and monthly payments. Many first-time homebuyers don't know what to plan for, but a lender can help. It is important to be as educated as possible to know if there are any gaps between where you are now and where you're hoping to be.
“When you recast, your interest rate doesn't change.”
If you do start the conversation early, should you have the lender pull your credit? This is highly debated. There is a cost for the lender, and your score could take a hit. I don't love soft pull credit reports that don't require the inquiry because they don't give all the necessary information or an accurate credit score. However, if you're not going to buy for a year or so, a soft pull can be the way to go.
As a lender, the most important thing I can do is start having conversations with people who are likely to borrow in the future. Even if a buyer isn't planning to enter the market for another year, I still want to begin building that relationship. Starting the conversation will create a dialogue where that person can send me emails or texts to ask questions. Then they have a friend in the business as well as someone to keep them educated.
All of this should show you that it's never too early to talk to a lender. If you have any questions, use this link to get in touch. I hope to hear from you soon!