First Step to Buying a House: Getting your Pre-approval

Introduction

Buying a house can be a daunting task, especially if you're a first-time homebuyer. One of the first steps you should take in the home buying process is to get pre-approved for a mortgage. A pre-approval will give you an idea of how much you can afford and make the home buying process much smoother. In this blog post, we'll go over what a pre-approval is, how to get one, and why it's important.

What is a Pre-Approval?

A pre-approval is a letter from a mortgage lender that shows how much money they are willing to lend you to purchase a home. The lender will evaluate your credit score, income, and other financial information to determine how much you can borrow. A pre-approval is not a guarantee that you'll be approved for a mortgage, but it does show sellers that you're serious about buying a home and that you have the financial means to do so.

How to Get a Pre-Approval: Getting a pre-approval is a fairly simple process.

Here are the steps you'll need to take:

1. Gather your financial information - You'll need to provide your lender with your income, employment history, credit score, and other financial information. Be prepared to provide documentation, such as pay stubs, tax returns, and bank statements.

2. Find a lender - You can shop around for a mortgage lender or use a mortgage broker who will do the shopping for you. Be sure to compare rates, fees, and customer service to find the best fit for you.

3. Complete a loan application - Your lender will provide you with a loan application to complete. Be sure to provide accurate information to avoid any delays in the pre-approval process.

4. Wait for your pre-approval letter - Your lender will review your financial information and provide you with a pre-approval letter that states how much you can borrow.

Why is a Pre-Approval Important?

There are several reasons why a pre-approval is important:

1. It helps you determine your budget - A pre-approval shows you how much you can afford to spend on a home, so you don't waste time looking at homes that are out of your price range.

2. It shows sellers that you're serious - A pre-approval letter tells sellers that you're serious about buying a home and that you have the financial means to do so.

3. It can give you an advantage in a competitive market - In a competitive market, sellers may receive multiple offers. A pre-approval letter can give you an advantage over other buyers who haven't been pre-approved.

Conclusion

Getting pre-approved for a mortgage is an essential first step in the home buying process. It can save you time, money, and frustration in the long run. By knowing how much you can afford, you can focus your search on homes that fit your budget. Additionally, having a pre-approval letter can make you a more attractive buyer to sellers and give you an advantage in a competitive market. If you're ready to start the home buying process, be sure to get pre-approved for a mortgage first.

Click HERE to get started with your pre-approval with Sam & Ashley Bromley - NMLS# 1151654/2308181

Regards,