Home Buyer Tip - What should I do first?
Before going out and looking at homes, you should first get in touch with a mortgage lender to at least get pre-qualified so you know how much home you can afford. Getting pre-approved (with a copy of a pre-approval letter) is even better so you will have some leverage in dealing with a seller.
The importance being that the seller then knows you have already been to the lender and your not someone "hoping" to be able to buy the house.
posted by Dave Melvin @ 8:55 PM
1 comments
1 Comments:
Don,
Thank you for your thoughts. I agree that a pre-approval is not the "end all" to guarantee loan approval, however, the pre-approval does show a seller that the buyer has been in touch with the lender, and has given enough information to qualify to be able to purchase a house up to a certain dollar amount. The buyer may still have to show the lender some further documentation to verify some things that may not show up on a credit report, but based on the credit report, they do qualify for the loan.
This is not to be confused with being "pre-qualified", which only means the buyer can buy up to a certain amount based on their income.
Even with a pre-approval letter, I have seen buyers (although very few) not be able to buy when they thought they could, but for the most part, a buyer with a pre-approval letter is far and away better than a buyer who is just guessing.
Wouldn't you, as a seller, rather see that the buyer has already been to the lender and gotten pre-approved, rather than accept his/her offer to purchase your home and then find out later they can't get approved to buy? At least you should feel better accepting the offer knowing they have been pre-approved up front.
By the way, no offense taken. I appreciate everyone's opinion and their thoughts on any real estate related topic. Feel free to post any further questions or opinions. Thank you.
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