FIRST TIME HOME BUYER PART TWO: Pre-Approvals

Why is my Realtor harping about me having a pre-approval, I just want to see the house??!

As a Realtor, it can sometimes feel like we are pushy when asking about a pre-approval. Getting your pre-approval before you start looking at houses is a very important step. First, it gives you, the buyer, a clear picture of where you are financially. It allows you to discuss with your lender a price, payments, taxes, and down-payment that work for you. Sometimes you may find you can afford more than you thought. It is important to know the additional costs you will have at closing. (We will cover those in more detail in a later blog.)

Additionally, there are many types of loans. There are conventional, FHA, VA, MSHDA, and RD to name a few. The type of loan you have will factor in on your home options. For instance, not all homes are eligible for FHA loans. In a very competitive market, most seller won't even look at an offer that doesn't include a pre-approval. There aren't many things worse than finding a home you love and losing it because you hadn't taken care of the pre-approval. Don't be afraid to check with more than one lender to find out how their costs are products differ. Not all lenders offer all types of loans. And not all lenders have the same requirements for approval. So if you get turned down by one financial institiution it doesn't necessarily mean you are out of luck. Your Realtor may be able to offer some guidance with this as well. Remember, enjoy the experience!!