Get Pre-Approved. (Buying a home, Step 1)

Many people, even myself, enjoy browsing homes. It's fun to imagine a different lifestyle living in a different neighborhood or having that gourmet kitchen you've always wanted. Somewhere between this pastime and having full-fledged "house fever", it's best to stop for a second and get pre-approved.

Before I go too far, I should talk about the difference between being pre-qualified and being pre-approved. Pre-qualification is less formal and can be accomplished in just a few minutes on the phone with a lender. The prequalified amount is based on information you provide about your income and debts. This is not a commitment from the mortgage company, but rather just a starting point to let you know how much house you can afford.

Pre-approval goes much deeper. This step involves providing the lender with financial statements and an extensive look at your credit history. The mortgage company may offer you some different loan packages based on your situation and then issue the pre-approval letter. This letter tells the home sellers that you are eligible for the loan and that there shouldn't be any obstacles financing it.

As you can imagine, with a pre-approval letter, you as the home buyer are in a much better position to make an offer on a property. The sellers can be more assured that your financing will come through and that the sale will actually happen. They know you're serious and that your offer is worth a serious look.

In addition, YOU know what you can afford. It's sad when buyers have looked at $300k homes and picked out several they like only to find out they can only afford up to $250k. This can easily be avoided by getting pre-approved up front.

If you're ready to make this step please call or email. I'd be happy to give you some referrals for some great mortgage lenders who will help you further understand the process and match you with the best loan for your situation. After all, if you're really serious about buying a home, why wouldn't you get pre-approved?

Peter

www.NashvilleCityHomes.com
REALTOR. City Home Specialist.