For most home buyers, pre-qualification is the first step to buying a house whether you are ready to buy now or as you gather info to determine when you will be ready. Here are three steps to help get you from pre-qualified buyer to homeowner.
Step 1: Pre-Qualification
When preparing to buy a home, it is important to know how much house you can afford. The pre-qualification process is quick and free without taking much time at all. Speaking with a lender, you can help answer all necessary questions regarding your financial situation. With this info, the lender can determine how much house you can afford and give you a better idea where you stand when it comes to determining your buying capability. Pre-qualification can be especially useful if you’re not sure you can afford a mortgage as the lender can also answer any questions you might have, as well. This step is crucial when deciding to buy a home and the Marr Team can provide a list of our preferred lenders to get you started!
Step 2: Pre-Approval
After you’re pre-qualified, your next step is to get pre-approved, which is more of an in-depth process. Your lender could ask you to submit paperwork about your income, assets, employment history and even your residency status. Getting pre-approved is almost like applying for a real loan, but it happens before you find the home you want to buy as you must have the pre-approval before making an offer.
Step 3: Shop & Offer
Home shopping time! You can shop for homes within your budget by using your pre-approval amount as a guide. Some sellers view pre-approved buyers more favorably, so with the help of the Marr Team you can now shop with confidence. Once you find a home you want to buy, we can help you put in an offer. If your offer is accepted, based on your pre-aproval you can then officially apply for the loan through your lender. This process will be faster since you have pre-approval because the lender will have just about all of your needed documents.
Don’t Forget: Keep everything “financially” steady! Be aware that changes in your financial situation can always affect your pre-approval. Like most loans, when you’re in the process of obtaining a home loan, do not take out any new debts or make big purchases, switch jobs, or make any big life changes that could affect your financial capabilities in question. If you’re looking to change jobs or buy something expensive, wait until after closing.
These are just a few of the major steps that show you the value of pre-qualification when preparing to buy a home. In the end, when those papers are signed, you can grab your new keys to your new home. Congratulations on becoming a Homeowner!
The Marr Team is here to help you every step of the way. Be sure to ask us about our buy/sell discounts, our preferred lender list, and if it applies, our first time home buyers guide! We have extensive resources to help make the home buying experience the BEST it can be!