Logic Vs. Emotion
When we are young adults most of us step out into the world renting our first apartment. What a feeling of independence! Then, much to our parents' dismay, some of us come back, but we save up enough money, get a better job, and then do it again. Then, at some point the renting vs. buying creeps in. For some of us there may be good reasons for renting housing, for others, owning is the only way to go. The right answer is, there is no right answer. The decision is a personal one.
I talk to a lot of people who decide they want to buy a house. Buying a house can be, and very often is, an emotional decision. How do I know this? Because if it wasn't, more people than not would have talked to a lender, saved a down payment, and gotten a pre-approval letter.
Instead, most people are looking for a house before even thinking about how much it costs. If that’s you, don’t feel bad, you are not alone, and that’s why lenders are there. They will help you understand how much you will be able to spend on a house, how much you will need for your down payment, what your monthly payment will be, and if you are approved, they will give you a pre-approval letter: your green card to buying a house.
It never ceases to amaze me how many people actually get insulted when I ask if they are pre-approved. The other day a man called me and made an appointment to meet with me. When I asked if he was pre-approved he told me if I didn’t trust that he could buy a house he would use another realtor. What he needed to understand was that no matter what realtor he decided to work with he would still need to have a pre-approval letter to buy a house. It is truly the green card to buying a home. The thing is, I really would have done a good job for him, but he’ll never know. One thing I do know is, when it comes time for him to buy that house, he will need that letter.
I am a realtor at Prudential Lucien Realty.