PREAPPROVAL AND SHOPPING.
Before starting the hunt, you need to get preapproved for a mortgage. The lender will ask you for basic information like W2s, bank statements, identification, and some questions about the type of home you are looking to purchase. Once everything is reviewed, your lender will provide you with a preapproval letter that will indicate how much you’re approved for based on your credit, assets, and income. Having a preapproval is important when shopping for a home. In most cases, your real estate agent will want to see the letter first before taking you to look at homes you might not be able to afford. There are several types of loans available including conventional loans, FHA loans, VA loans, and USDA loans, which your real estate agent will help you decide on. A very important step to take before beginning the search is to make a list of what is most important to you to have in a home. Do you need a 2-car garage? How many bedrooms does your family need? What about a pool? These are all important to consider before even starting. It’s also important to be realistic and understand that all of the items on your wish list might not be found in one house. Put your wish list in order from most important to least so when you need to compromise later you’ll know what to knock off the list first. Online is a great place to start browsing for homes and get a general idea of how much the type of home you want costs.