One of the most important steps for first time homebuyers should be to meet with a lender to get prequalified. Meeting with a lender may not seem like a lot of fun, but it is vitally important to tackle this obstacle before a buyer starts touring properties.

There are many reasons to meet with a lender first. With the current low interest rates, many buyers may be pleasantly surprised to learn they can afford a more expensive home than they thought possible. Alternatively, if they have toured homes priced higher than they qualify for, it may be difficult to start looking at lower priced homes.

Another important reason to meet with a lender early in the process is to insure that the buyer’s credit score is accurate. It is not unusual for a credit report to contain inaccurate information that may lead to a lower credit score. This can take time, sometimes months, to correct. The sooner that the buyer learns of any inaccuracies, the sooner they can have them corrected.

Perhaps the most important reason to get pre qualified before touring homes is to be sure that the buyer will be ready when they do find that perfect home. We are starting to see more multiple offer situations, and many homes priced to the market are going under contract within a couple of days of hitting the market. Getting prequalified early will help give the buyer a good shot at buying the right house when it becomes available.

With a letter of pre-qualification in hand, the buyer is now ready for the fun part; touring properties! With historically low interest rates, first time home buyers are currently in an excellent position.

As usual, I have included data for the number of homes sold during the first six months of 2012. In addition to the 301 homes sold during this time period, another 149 homes are currently pending, or under contract, as of the date of writing this article.

The included data reflects sales of homes on both less than and greater than 1 acre in the greater Bozeman area, including Four Corners, Gallatin Gateway, Bridger Canyon, and Bozeman city limits. The data includes home sales reported through the local Southwest Montana MLS, and does not include private party sales, Condominiums, or Townhouses.

Tim Ford REALTOR ®