Complete Buyers' Guide

Loan Pre-approval
The first step is to meet with the mortgage company to be pre-approved for your loan (unless you are paying all cash). This first step is very important for several reasons.

Once you are pre-approved, you can shop for your new home in confidence, knowing that you won't have any problems getting the loan.

Many buyers who skip this step and just go out house hunting are unsure and nervous when they find a home that they like, because they don't really know for sure if they will be approved for the loan.

Loan underwriters have specific rules and guidelines they must follow. Many would-be home buyers have been dismayed and disappointed to find out 2-3 weeks after they enter a contract that the lender has turned them down.

Please realize that one of the biggest fears a home seller has is that they will enter a contract with a buyer, prepare to move, and then find out that the buyer didn't qualify.

When you get pre-approved first, we will obtain a letter from the loan company stating the amount that you are approved for. When shown to a seller, the letter makes the seller feel more comfortable, and will add more power for us in negotiations. Many of the best homes can have several offers on them at the same time from different buyers. Often, the buyer that can show that they are already approved for their loan will get the house.

The bottom line is that getting pre-approved for your loan first means stress-free home shopping AND more leverage with the seller!