There are several mistakes some home-buyers make, and some of them are huge!
MISTAKE #4: FAILING TO GET PRE-QUALIFIED FOR A MORTGAGE LOAN
Don't waste hours searching for a home that is not in your price range! Save time and money by pre-qualifying for a loan.
Before you go shopping for a home, you need to determine how much you can afford. Once you are pre-qualified for a mortgage, you will know what your buying power is. You will save time by looking only in your price range.
This process is simple. A lender will ask you basic questions concerning your history, run a credit report, and determine your buying power. You can even get pre-approved for a loan! Imagine for a moment, if, when you and your Realtor initially draft your offer for the home you select, you are already approved for the loan - IN ADVANCE... No stress, no worrying about qualifying, no concern about your ability to qualify would stand between you and the home of your dreams.
In today's market, a pre-approval can be a powerful negotiating tool. The old system saw the buyer spending many hours locating the perfect home, carefully drafting an offer, awaiting acceptance of the offer, consulting a loan officer, filing the multitude of forms and applications, and sometimes this was all a waste because, for whatever reason, he was turned down for the loan.
You deserve peace of mind and negotiating power by getting an approved loan before you make an offer.