The first step in the home buying process is getting a pre-approval letter. I can't stress this enough to my buyers the importance of this pre-approval letter. Although it does not guarantee a final loan approval it dictates a lot of what can be done in the initial home search.
First the pre-approval letter tells if the buyer is even ready to purchase a home. What I mean by this is there can be credit issues that need to be taken care of, excessive debt, as well as other things that may arise.
Second the pre-approvallets the buyer as well as the agent know what price range to look for homes in. You don't want to have the buyer looking at homes priced at $200,000 when in actuality all that they can afford is $100,000.
A lot of buyers will say that they will wait until they find a home to get the pre-approval, in some cases this is OK but I would not make a habit out of it. There is nothing worse than taking a buyer out and finding them their dream home only to find out that they cant't get it. It waste a lot of both you and the buyers time and the worst part is the clients disappointment.
So get pre-approvedbefore you actively go out and search for homes. If you need help with this process pleasecontact Eddie Arnold with HER, I can point you in the right direction.