Before
you
start
house
hunting,
you need
to
determine
how much
house
you can
afford,
which
will
entail
getting
preapproved
for a
home
loan. A
real
estate
agent
can help
you find
a
mortgage
broker
to begin
the
process.
While
getting
preapproved
is a
more
in-depth
process,
a
preapproval
letter
lets
both
real
estate
agents
and
sellers
know
that
you’re a
serious
shopper
who
means
business.
What do
I do to
get preapproved?
Getting
preapproved
requires
that the
lender
review
your
finances,
confirming
pay
stubs,
tax
records,
credit
accounts,
bank
statements
and
sometimes
more.
The
preapproval amount
will not
only be
a
reliable
estimate
of what
you can
afford,
but your
preapproval
also
indicates
that a
lender
is
willing
to do
business
with
you,
pending
the
purchase
price,
market
appraisal
and the
underwriting
process.
You can
also get
prequalified
for a
loan,
which
means
that a
lender
has
taken
some
information
from
you, and
made a
tentative
decision
without
necessarily
verifying any
of the
information.
Prequalification
provides
you with
a quick
estimate
of the
amount
you can
afford,
but is
not
considered
as
reliable
as
preapproval.
What
should I
ask when
shopping
for a
lender?
Your
real
estate
agent
should
have a
mortgage
broker
they are
willing
to put
you in
contact
with — this
lender
will be
someone
they
have
done
business
with in
the
past,
and feel
comfortable
recommending. However,
if you
decide
to do a
little
comparison
shopping
and look
for a
lender
on your
own,
here are
a few
important
questions
to ask.
-
What
loan
programs
do
you
offer
and
which
one
do
you
think
is
best
for
me?
-
How
long
will
the
loan
approval
process
take?
-
What
line
items
of
the
loan
agreement
—
if
any —
are
negotiable?
-
What
is
your
policy
for
locking
in
interest
rates,
and
will
you
honor
a
lower
rate
if
it
declines
during
the
lock-in
period?
-
Are
there
fees
for
prepaying
on
my
loan?
