If you are considering the purchase of a home, it has to be an exciting time for you! One of the first steps I always recommend is for a prospective buyer to determine the amount of their buying power. When making an offer, or for that matter even looking at property, a savy listing broker will ask you or a buyer agent representing you, if you have evidence of buyer power. My recommendation as a good first step is to speak with a lender about pre-approval for mortgage. This process usually only takes about 15 mintues and is well worth the effort. It provides you a clear definition of your ability to purchase and also assists your agent to know your true capabilities to purchase. Another positive factor is it helps your broker to know the parameters of the type of home to seek. If you are a first-time homebuyer using FHA or Rural Development financing, for the most part, you can rule out foreclosed or REO properties needing a lot of work. The home you will purchase will need to be in good condition. Of course, there are exceptions to the rule if you are using a program like FHA 203K which is for non-structural improvements to the home. There may be some similar programs I am unaware of, but a good 'rule of thumb' is to only search for homes in better condition.
If you are a conventional buyer, meaning you have at least 5% to place down on a mortgage, there are more opportunities for you.
Also, please understand the difference between pre-qualification and pre-approval. A lender can pre-qualify you based upon your income and monthly outgoing expenses without pulling your credit report. However to get pre-approved, the lender will have to actually contact the credit bureaus and obtain your credit report to determine your credit score and worthiness for a mortgage.
If you are serious about purchasing, please give me a call and we can discuss your situation and determine which program may work for you and connect you with a lender to meet your needs.
Best to you!
