When you’re looking for a home, we can’t stress enough how vital it is to be pre-approved by a reputable lender. Pre-approval for buying a home is not only the first step, but the most important step! One of the main reasons is the pre-approval process will show you how much home you can afford to buy. And determining that goes way deeper than just punching a home price into a mortgage calculator. Nothing is more disappointing than to find out, months into the process, that you really can’t get a mortgage for that $300,000 home you and your family fell in love with this weekend.

Your pre-approval for buying a home is based on several factors, including your credit score, income, employment history, liquid assets and any equity you may have in your current home. If you’re a first-time home buyer you’ll likely have to demonstrate a good rental history.

Even though you’re anxious to get in the car and start touring those houses you’ve seen online, but if you don’t have a pre-approval for buying a home, you likely won’t find a good real estate agent to unlock the doors and show you these homes. Why? Because GOOD agents know sellers only want qualified buyers coming inside their homes… after all, wouldn’t you feel the same way if it was your home? Also, an experienced agent has lots of clients vying for their time; lots of pre-approved buyers wanting the agent’s help. A good agent doesn’t have time to waste on someone who may not even be able to qualify for a loan. The only way to demonstrate you’re a qualified buyer by getting a pre-approval for buying a home from a reputable mortgage lender.

Once you find the home of your dreams, we’ll write up a contract for you but you have to get your offer accepted by a seller. Whether you’re the only buyer or one of many, submitting your pre-approval letter to the seller along with your offer to purchase the home will show the seller that you’re serious about your offer and can actually close the deal – that’s a BIG deal to sellers.

This all applies to cash buyers, too. A cash buyer demonstrates his or her pre-approval for buying a home by getting a written “proof of funds” document. In most cases, this will be a letter from your bank stating you have sufficient funds available for the purchase amount. If you’re using funds from another source (an IRA or investment account), you’ll need a copy of a fresh statement showing a balance that reflects the purchase price of the home.

We work with several excellent lenders who can help you get pre-approved. Call us today for a referral and get the ball rolling!