The Key to a Smooth Home Purchase: Start With a Mortgage Pre-Approval
By Sam Alpert, President and Mortgage Loan Originator, NMLS #1961555
Before you tour a single house, get pre-approved. Here's why it's the real first step — and what a lender is actually checking when they issue one.
The First Step to Buying a House: Get Pre-Approved!
Alright, so you're thinking about buying a house. That's awesome! But before you reach out to a real estate agent and fall in love with the perfect home, there's one crucial step you need to take: get pre-approved. I might be biased because I'm a mortgage advisor, but getting pre-approved gives you a realistic budget and a stronger offer. Let me explain why.
Why Get Pre-Approved?
First off, most Realtors won't even show you properties unless you're pre-approved. And it makes sense — they want to be sure they're working with buyers with the financial capacity to purchase a home. Otherwise, it's like window shopping without a wallet: fun but ultimately pointless. Additionally, a pre-approval gives you a clear picture of your monthly payments and closing costs, so you won't be hit with any nasty surprises down the road.
What is Pre-Approval?
It's when a lender reviews your financial situation to determine how much you're qualified to borrow. It's known as the four Cs: Capacity, Capital, Credit, and Collateral.