Preparation
˃ Speak with a Mortgage Lender/Broker and obtain written pre-approval for a loan. This helps you determine your purchasing power and enables you to act expeditiously and with confidence when you identify the property you would like to purchase. Additionally, a pre-approval assures the seller that you are qualified, providing you with an advantage when bidding on a home. This is especially helpful in a multiple interest situation. For mortgage lender recommendations, please ask your agent - or to get pre-approved online, click here.
˃ There are several loan options available. The most typical are FHA (3.5% down), USDA (0% down in approved areas), and conventional (5%, 10%, 20% down). For more information on loan options, talk to your lender.
˃ Ideally, be prepared to have those funds liquid when you begin your search. The balance of the down payment will be due upon closing.
˃ In certain forms of ownership, offers are not only accepted based upon price, but upon the financial strength of the potential buyer. Therefore, be prepared to have a pre-approval letter from your lender available. In many cases sellers require you to provide this with your offer. Regardless of the outcome, this information will be required for most purchases and financial institutions so having it prepared will also save you time in the future. Be assured your agent will safeguard this information in a confidential manner.
˃ Review your credit report. Remove all disputed claims and clear up any debt if possible, especially outstanding credit card balances.
