Get Pre-Approved!

This is a very important step before you even starting to look for a home. Many people get excited about buying a home and want to start looking around as soon as possible. You may even hook up with a real estate agent and start considering different properties, but you need to know what you can afford before you get started. There is nothing worse than finding a home you want and not being able to afford it. Of course now you will have to look at lower priced homes and your enthusiasm fall like a rock because you are still thinking about all of those nicer homes.

Getting pre-approved not only helps you know what you can afford, but it also can save you a significant amount of interest. Most pre-approvals are good for 90-120 day rate hold. This means that you can hold the rate you have been pre-approved for this long. If the rates happen to go up and you end up buying a home in this time frame, then you are guaranteed the rate you were originally pre-approved for, not the higher rate at the time. Also, if rates happen to fall in this period, you will get the lower rate.

Getting pre-approved is a fast and easy process with no cost and no obligation. Although having a written pre-approval holds the rate for you, it is not guaranteeing you the mortgage. Once you have found a property and make an offer, the deal becomes live and will be sent in for approval. Final approval is based on satisfying special requirements like employment verification, down payment (if you have one) etc., so always make sure to put subject to financing in the mortgage contract just in case.


Make sure you deal with a professional who specializes in residential mortgages. The mortgage industry is extremely complicated with hundreds of options and choices. Using an expert can make the difference between getting into a home or your choice or having to rent forever and paying off someone else’s mortgage!