Step 3:
Get Qualified
Getting qualified is one of the most important steps in the process. Many buyers shop without proper qualification, which can lead to many issues down the road. Connecting with someone you can trust who will give you a proper pre-approval is key to making your home-buying process smooth and easy!
Getting a Proper Pre-Approval
It is important that when you get a pre-approval you get a proper pre-approval, so what does that mean?
That means you provide all details, including your income. Without your income, you cannot be properly pre-approved, which can lead to unrealistic expectations of what you can afford, but can also lead to you missing out on homes that you may be able to afford.
What Not To Do Once You Are
Pre-Approved
Once you have your pre-approval, it is highly recommended that you stay away from the following.
-Any new debt (Vehicles, Furniture, New Credit Cards, etc.)
-Any Large Cash Purchases
-Large Deposits (These can delay the process)
-Co-Signing (Whether it is a family member, friend or business, stay away)
-Job changes
Why Get
Pre-Approved?
Getting pre-approved is a crucial step in your home buying journey for multiple reasons.
First off, it gives you a good idea of what you can and should be looking for. Nobody has the time in their busy schedules to be looking at homes that they can not get approved for so it is key to know how much you can afford!
Second, pre-approval gives you an edge at offer time. When sellers are looking at two identical offers, both with a financing condition, they are most likely going to take the one that comes with a pre-approval letter because it gives them a better chance at the deal going through.
Finally, pre-approval saves you the emotional hurt of losing a deal. Although a pre-approval is not a 100% guarantee, it guides you. It means you won't be putting in offers that you have not been told you can afford.
Overall, a proper pre-approval will allow for a smoother and better home shopping experience!