If you have been spending your weekends browsing open houses and can't wait to buy a new home, this is an exciting time for you. On the other hand, it's a huge purchase and the entire home-buying process can be overwhelming. For those ready to look for a home to buy, consider completing some initial work prior to getting out there and looking at homes.
Do you need to be pre-qualified or pre-approved for a loan? This is question that people often want answered. In general, pre-qualifying is a simple process where a lender quickly gives you a very general idea of how much you might be able to get for your loan amount. It is no guarantee that you actually will be able to get that amount, but it provides you with a quick estimate of what your budget should be. It's usually free and often only takes minutes, so while it can be a great first step, pre-approval actually is more important.
The pre-approval process is longer and includes actually sitting down with a lender and sharing your credit scores, your income, your expenses and other financial information. You will pay a fee for a pre-approval application, as well. However, being pre-approved for a loan makes the buying process easier because you don't waste time looking at homes that you cannot afford and once you find a home, a pre-qualified buyer looks much more attractive to a seller. So if a bidding war ensues and you are the only pre-qualified buyer, this gives you the advantage.
The best thing you can do is start preparing for a home purchase months before you even get pre-approval or start shopping around. It all begins with saving money and curtailing your expenditures. This means don't run out and buy expensive items and don't get a new credit card or two or three. Pay all of your bills on time and get your credit score as healthy as possible. All of this makes it easier to pre-approval for a loan and approval for a higher loan amount. Also, saving up money is always a good idea before moving even if you plan on using the funds from the sale of your current home as a down payment for your new home. Moving is expensive and you have to pay for inspections and other fees, as well as possibly making updates to the new home.
Also type up a list of your wants, likes and dislikes for your realtor, as well as sharing how much you wish to spend and your pre-approval loan amount. All of this is essential information for a real estate agent. While you probably cannot realistically find a home that has every single feature you want, be sure to share the most important items with your realtor. This will include the locations that you want as well as the size and general configuration of the home's layout.
When it comes to a realtor, choose someone with experience, particularly in the areas in which you really want to live. If you are hoping to buy a house in the scenic Texas Hill Country, consider contacting Nixon Real Estate. For nearly 40 years, the realtors at this Fredericksburg real estate firm have been find Kerrville real estate, Fredericksburg homes for sale as well as San Antonio real estate and homes throughout Hill Country.
Do you need to be pre-qualified or pre-approved for a loan? This is question that people often want answered. In general, pre-qualifying is a simple process where a lender quickly gives you a very general idea of how much you might be able to get for your loan amount. It is no guarantee that you actually will be able to get that amount, but it provides you with a quick estimate of what your budget should be. It's usually free and often only takes minutes, so while it can be a great first step, pre-approval actually is more important.
The pre-approval process is longer and includes actually sitting down with a lender and sharing your credit scores, your income, your expenses and other financial information. You will pay a fee for a pre-approval application, as well. However, being pre-approved for a loan makes the buying process easier because you don't waste time looking at homes that you cannot afford and once you find a home, a pre-qualified buyer looks much more attractive to a seller. So if a bidding war ensues and you are the only pre-qualified buyer, this gives you the advantage.
The best thing you can do is start preparing for a home purchase months before you even get pre-approval or start shopping around. It all begins with saving money and curtailing your expenditures. This means don't run out and buy expensive items and don't get a new credit card or two or three. Pay all of your bills on time and get your credit score as healthy as possible. All of this makes it easier to pre-approval for a loan and approval for a higher loan amount. Also, saving up money is always a good idea before moving even if you plan on using the funds from the sale of your current home as a down payment for your new home. Moving is expensive and you have to pay for inspections and other fees, as well as possibly making updates to the new home.
Also type up a list of your wants, likes and dislikes for your realtor, as well as sharing how much you wish to spend and your pre-approval loan amount. All of this is essential information for a real estate agent. While you probably cannot realistically find a home that has every single feature you want, be sure to share the most important items with your realtor. This will include the locations that you want as well as the size and general configuration of the home's layout.
When it comes to a realtor, choose someone with experience, particularly in the areas in which you really want to live. If you are hoping to buy a house in the scenic Texas Hill Country, consider contacting Nixon Real Estate. For nearly 40 years, the realtors at this Fredericksburg real estate firm have been find Kerrville real estate, Fredericksburg homes for sale as well as San Antonio real estate and homes throughout Hill Country.
About the Author:
Pammy McGrath likes reading real estate blogs. If you are looking for certified real estate Fredericksburg TX agents, or to discover a Fredericksburg homes for sale, please check out the NixonRealEstate site today.