So you think you’re ready to buy a home. Fabulous! What’s the first step you can take to set the wheels in motion?
Drive through several neighborhoods looking for “for sale” signs? Call a real estate agent and ask for an appointment? Decide on a color scheme for your soon-to-be family room?
Guess again. The smartest first step you can take, which will set the stage for a smooth and happy home-buying experience, is applying for a mortgage pre-approval.
You’ll be more prepared by applying for a home loan before you start looking. If you think about it, most items are purchased this way. You wouldn’t shop for a new pair of shoes without cash or a credit card in your pocket, right? Then you really don’t want to look at a single house until you have the financing lined up. Here’s why:
- When you go into the home search with a pre-approval in place, you will already have an exact figure you know you can spend. Your realtor will know you’re doing more than just looking around. You’ll be viewed as a serious shopper who’s ready for home ownership. Because of this, you’ll be treated with a little more urgency.
- Sellers will see that you’ve already taken care of this important step, and you’ll be in a better position to negotiate a favorable price.
- It’s important to find a lender you can trust. So when you take the initiative in securing a pre-approval on financing a home, you can better choose a lender based on the terms and conditions that are most important to you.
Once you’ve spoken with a loan officer or have received an online pre-approval, you know what your price range is. You know what the estimated monthly payments will be. And you won’t be tempted to look at something that’s beyond your budget, sidestepping a potentially problematic situation.
Knowledge is power, so see your lender first. It’s the logical first step to make your home buying process a smooth one.
Navy Federal is an equal housing lender and is Federally insured by NCUA.
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