When buying a house many consumers are confused by where they should start. Should they begin by going to a Realtor or should they begin by going to a mortgage professional or mortgage broker? When buying a home it is usually better off to start with a mortgage professional or mortgage broker to get pre-approved first. This not only shows people that you are a serious buyer and you have the buying power to buy now, but it also gives you an idea as to how much of a home you are approved to buy so that you know what price range you should begin looking in.Buying a house without knowing your financing options ahead of time is almost always a recipe for disappointment. Especially in times of tightening credit standards, before buying a house contact your mortgage professional and get pre-approved for financing before you start shopping.
When you are buying a house always choose neighborhood over house size. A nicely sized home in a good, appreciating subdivision will protect your equity better than a large house in a worse neighborhood.
Buying a House: Determine how much you can afford.
This is determined by income, credit scores, montly obligations, amount of down payment, and the interest rate.
Your mortgage broker will issue you a pre approval letter that will state maximum loan amount and down payment required. Your Realtor can use this letter to narrow down the search for properties that fit into this price range. They will also present this letter to the listing agent when writing the offer to purchase. A pre approval letter makes an offer to purchase much stronger the an offer without a pre approval letter.
