Page 53 - The Latest Homebuying Guide

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Step 3 - Get Pre-approved

If everything is good up to this point, then speak to your mortgage
officer about getting you pre-approved. Getting a pre-approval is
important for the following reasons:

1. You’ll know how much money you can get

2. You’ll know how much you can spend on your new home

3. Your realtor will take you more seriously. No one wants to
drive around looking at houses, then find out you can’t
afford them.

4. Sellers will take you more seriously because they know you
have the money and you are ready to buy. They can
anticipate getting their check faster.

5. You will have a competitive edge in the marketplace.
Sellers will keep you on their list of buyers.

Now while pre-approval gets one foot in the door, be mindful that
you can still be turned down for a loan later. This can happen if
your financial situation changes or new information is available to
the lender which did not come up during the pre-approval process.
It is therefore advisable that you get “Fort Knox security” to protect
your current financial situation.

Don’t do anything stupid like buying a car, running up debts or
spending your deposit, etc. Be very open and honest in the
pre-approval application process. If there is something that
previously existed that does not show up on your credit report such
as a past foreclosure, be sure to mention it to your mortgage loan
officer.

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