By Sandra Kilgore, GRI, ABR, SFR
If you have been thinking about buying your first home, but you’re not quite sure of the first step, this article will give you a little more insight into the process and what to expect.
Having a basic knowledge of the terms is important. Understanding the difference between pre-qualification and pre-approval is one of the most significant factors. A large percentage of buyers who are pre-qualified for a loan are not successful in purchasing their dream home. Getting prequalified is often the first step when searching for a home. You supply basic financial details, such as your income, assets and debts, and the lender provides a preliminary estimate of the amount for which you may qualify.
Pre-approval involves an in-depth look at your finances and usually requires an application fee, but this process brings you closer to determining your potential interest rate and monthly payment. Being pre-approved also puts you in a better position in a competitive market because it shows you have your finances in order and have survived the dreaded underwriting process.
Buying a home can be stressful. Avoid some of the stress by requesting that your lender complete the full mortgage application process and issue a pre-approval estimate for you before finding a home. Many sellers and agents will not consider an offer on a property without a pre-qualification or pre-approval in hand.
Please feel free to contact me if you would like to speak with a lender who can assist you with getting started.
Sandra Kilgore GRI, ABR, SFR