| For a first time home buyer, you are taking on a | | | | The preapproval process could take as long as a |
| monumental task, undoubtedly the largest task you will | | | | week, but it is time well spent. Once you are armed |
| ever venture upon, financially speaking that is. | | | | with a preapproval, you will know exactly how much |
| Unfortunately, most of us don't have huge sums of | | | | you can spend. |
| money sitting around in our bank accounts to go out | | | | The preapproval is also very powerful because the |
| and pay for a house in cash. We must find a lending | | | | seller of the home wants to be sure that you have the |
| institution that will allow for us to borrow the money. | | | | financial backing to purchase their home if they decide |
| The fun part of buying a home is going out to look at | | | | to sell it you. |
| various houses for sale, and walking through what | | | | The preapproval is not to be confused with the pre |
| could very well be your dream home. But before you | | | | qualification. The pre qualification is determined by a |
| spend all of your time visiting open houses and walking | | | | quick conversation with a loan officer who determines |
| through homes for sale, you will want to figure out | | | | your spending power from a verbal standpoint. You |
| how much you can afford. | | | | are asked a series of questions about employment, |
| The last thing you want happening to you, is finding | | | | outstanding debt, credit, assets, etc. Once this |
| your dream home, making a bid, having your bid | | | | information is taken, the process pretty much stops |
| accepted by the seller, than finding out a week later | | | | right there. What the lender believes you can afford is |
| that you will not be purchasing the home because you | | | | merely an estimate on their part, no verification of is |
| don't have the income to back it up. | | | | done on the information you provided them with. |
| To avoid this heart breaker, you will want to acquire a | | | | Be careful, this estimate could come back to haunt |
| preapproval from a lending institution. | | | | you if it was over estimated, so take the time and get |
| The preapproval process involves an in depth look at | | | | a preapproval. |
| your financial situation. The lender will examine your | | | | When purchasing a home, allow for time to be on your |
| credit, verify your employment and annual salary, take | | | | side. Take your time and find the right lender and |
| a close look at your outstanding debt as well as your | | | | realtor for you. And most of all, take your time, so that |
| assets, and determine what money if any you have | | | | you may find the perfect home for you. |
| available for a down payment. | | | | |