Buying a home (for most people), will require getting a mortgage loan.
If you are lucky enough to have cash for your home purchase, you will just need a letter from your financial advisor stating that you do have enough money to buy a property with cash.
If not, speaking with your lender will allow you to get a grip on what you can spend on a home, how much you will need for a down payment, what your monthly payment will be and what type of interest rate you qualify for and if you will need to improve your credit rating.
Your credit rating dictates whether you can get a loan with a great rate as well as how much you qualify for in regards to the loan itself. Or, if you can get a loan at all.
Other advantages of speaking with your lender first, include a solid breakdown on what type of money you will need upfront including your down payment and money for closing costs, as well as the time frame that it will take to close the loan once you place a home under contract.
Speaking with your lender will also allow you the opportunity to learn of any creditors out there damaging your credit rating. Once identified, your lender can direct you on how to clean these up which will help improve your credit rating.
Say, you already found a home and you want to buy it. Now, you go to the lender.
If there are any issues that arise it does not give a lender sufficient time to help you address them. The financial damage occurs when you are already well under way to buying the house.
At first, you may think postponing the purchase is no big deal. But, remember, there is other money being spent by you on a home you may never buy.
These expenses come in the way of appraisals, surveys, inspections.
And, if the lenders are lucky enough to pull the loan off (because you started this process too late), it will be at an increased interest rate if the credit score is low. All of which could be avoided by planning ahead.
The very best thing you can do, is to get started working on any credit issues you have well ahead of going out and shopping for a home to buy.
Once you have an issue it can take months to correct so understanding where you stand today will help you get into a home tomorrow.
Save your money by knowing your credit rating upfront.