Michelle McLaughlinReal Estate

Loan Pre-Approval

Obtaining pre-approval for a home loan or mortgage is a critical step in the home buying process. If you don't already know which mortgage company you will be using, your real estate agent will have a list of good lenders you can choose from. There are different types of home loans, and you need an experienced lender. One with a good reputation for getting the job done. You can also ask family and friends if they know a good lender. Compare a few and choose the one you feel good about. Like your real estate agent, you will be talking to this person often. Make sure you feel comfortable with them.

Your lender will help you choose the type of home loan that fits your needs the best. Common home loan types are conventional, VA, FHA, and USDA, but there are many others. The video below explains the differences in the loans.

Remember, loan pre-approval is a very important part of the home buying process. Without a pre-approval, you don't know your price range or how much house you can afford. Many buyers want to go house hunting before they are pre-approved. When you do this, you could be setting yourself up to be disappointed. Most experienced real estate agents won't show you homes before you are pre-approved unless maybe you are a past client. Don't get offended because they are just putting your best interest first. You don't put the cart before the horse.

Once you have your pre-approval, your real estate agent will be able to help you find homes in your price range, meeting the criteria you have set. The next stage is one of the most exciting parts of the home buying process: the search for your future home.