House Hunting Question

[thigley986]

This is a little off-topic, but since a house is a huge financial decision I thought to ask here! We rent in the Washington, DC area and would like to purchase a home in April 2011 (no hard deadline, just a goal and our lease ends).

1. When should we become prequalified for a loan?
2. When should we begin talking to realtors?

(If you have bought a home in the DC area and have a realtor you really enjoyed, we'd love to get contacts!)

[wincrasher]

Pre-qualification letters are only good for a short time - I think up to 90 days - but you should check with a few banks. Your realtor will advise you to have a letter in hand at the time you make an offer - it shows you are serious.

Unfortunately, you are in a market that hasn't had much cooling off. DC is where all the money is these days, so prices are strong.

It may be a good idea to make contact with a couple realtors and tell them your situation and time horizon. If you are looking for something particular, or just looking for a fantastic bargain, they can alert you when something comes up.

Don't get locked into a single realtor by signing an agreement. Many try that, but it's not a requirement in any market - if you push back on that, they'll let that go.

Good luck and let us know how it's going.

[snshijuptr]

You might want to get pre-approved for a loan instead of pre-qualified. Also make sure you mention to realtors when you contact them that you are pre-qualified. Near me realtors won't talk to you until you are pre-qualified.

[Personal Finace Fleur]

it would be better if you will begin talking to realtors now to become prequalified for a loan