Creating your homebuying strategy is like the game of chess: you have to plan what you will do next. Below we have listed a few things you should keep in mind to ensure that your homebuying plan is as strong as possible.
Pre-Approval: The First Step in the Homebuying Process
Before you even begin looking for your dream home, you want to get in contact with your lender to get pre-approved. If you are a first-time homebuyer, you are probably wondering what it means to be pre-approved. During the pre-approval process, your lender will take an application, pull credit, review income & assets, submit your information through an automated underwriting system, and issue a pre-approval letter for you so you can start shopping for your new home.
“The pre-approval letter from your lender tells you the maximum amount you are qualified to borrow. Getting a pre-approval letter is not a loan guarantee, it simply states how much your lender is willing to lend you", says Freddie Mac.
How much you can afford is vital information to know before you start looking at homes that could potentially be out of your price range. The pre-approval letter also serves another important purpose.
“This pre-approval allows you to look for a home with greater confidence and demonstrates to the seller that you are a serious buyer", says Freddie Mac.
If you are a chess player or are familiar with the game, you know that a strong opening play shows your opponent that you are ready to win the game. The same goes for being a homebuyer when you submit your offer to the seller with a pre-approval letter from your lender, which shows you can afford the seller’s home. Additionally, this process identifies potential issues before you make an offer on your dream home.
Homebuying Is a Team Sport
There are two main people on your team: your Real Estate Agent and your Mortgage Banker. Your Mortgage Banker will help you get pre-approved and find financing that is catered to you. Your Real Estate Agent will help you find your dream home that is within your pre-approval amount. You should plan strategically by talking to your Mortgage Banker before you start talking to your Real Estate Agent. Your lending team is here to help you make the best decisions during your homebuying process.
Getting pre-approved is a vital step in the homebuying process. It also should be one of your first steps. Starting your journey by getting pre-approved allows you to gain a full understanding of what you can afford (which might be higher than you thought), and it shows sellers that you’re a serious buyer. One of the perks of working with Apex Home Loans is our Apex Approved program. Apex Approved allows you to go from contract to closing in as little as 15 days*. In addition, you don’t need to have a ratified contact in order to be Apex Approved. Once you have a ratified contract there are a few additional steps, including the appraisal, but it can all happen quickly with Apex Approved. Ready to get started? Connect with our team today!
*Apex Approved is not available with all loan programs. Talk to your Apex Home Loans Mortgage Banker for more information.