So, you are at the point where you have decided to start looking for a home...congratulations! Mortgage "pre-approval" is the 1st step you must make in the home buying process. Why? Because pre-approval shows Realtors & sellers: 1) that you are not only serious about buying a home, but; 2) that you are capable of buying a home. Quite frankly, Realtors will be hesitant to work with you & sellers often will not even entertain offers for their properties if you are not pre-approved, as neither want to waste their time starting a transaction that could fall apart because you could not obtain a loan. However, if you have shown the initiative to get pre-approval, both the Realtor and the seller will know you are serious and capable and in turn will be willing to work for and with you. Simply contact your bank or other lenders in your area & tell them that you are looking to buy a home and that: 1) you would like to apply for pre-approval; & 2) if approved, you would like help in finding the type of loan that best suits your situation. Their loan officers will be glad to guide you through the process. Some things to consider in a mortgage are: the interest rate, the length of the mortgage, and the other terms that affect the overall cost of the mortgage, such as pre-payment penalties, early payoff possibilities, etc. By comparing several types of mortgages with the help of a loan officer, you can be sure to find the one that will serve your needs the best. Remember that a loan is probably the biggest investment that you will make in your lifetime. That said, it is wise to insure that you are on the right track from the very beginning. Obtaining pre-approval from the start is the essential 1st step. |