The most important step in shopping for a new home

Becoming pre-approved – the important first step in shopping for a new home
 
When you want to purchase a home, one of your first steps should be meeting with a local lender and getting pre-approved for a loan.
 
This step is important for 3 reasons:
 
1. You'll know what you can spend. Looking at homes you can't purchase not only wastes your time, it's depressing. And, as many home shoppers have learned, once you switch to homes you can afford, none of them will please you.
2. You'll know if you need to restrict your search to homes that meet certain loan requirements. Some loans have guidelines regarding the homes that will qualify for their financing.
 
3. When you have a pre-approval letter in hand, it's more likely that your offer will be accepted, or at least considered over offers without such a letter.
 
In fact, if you're shopping for bank-owned homes here in Buffalo, it's likely than an offer without a pre-approval letter will be rejected as a matter of routine.
 
Don’t mistake a Mortgage Loan Pre-Qualification for a Pre-Approval.
 
There is a huge difference between the two. A pre-qualification is done with no verification. As a result, it doesn't mean much.
 
You simply talk with the mortgage lender and tell him or her about your situation. You state your income and your expenses, discuss your employment history, and answer a few questions about your credit. Then they tell you if you appear to be qualified and at what price.
 
When you become pre-approved it means the lender has verified your income, assets, down payment availability, and employment. He or she has also checked your credit. So unless you do something to change the picture, you will be able to get a home loan for the amount the lender quotes.
 
A pre-qualification doesn't mean a thing to home sellers or banks, so take the extra step and become pre-approved.
 
If you need to find a good lender, get in touch.  I'll be happy to provide you with a list of lenders who have served my clients well.