Buying a new home is a big decision and you are probably ready to go all out in preparation. It can never hurt to be prepared with a preapproval for a loan before you start looking into actual houses on the market. Being preapproved gives you the advantage of knowing for sure what you are able to afford. Most of us believe we have a pretty good idea of what we can afford, still it is usually the lender who has final say. No one wants to find themselves in love with a house only to have a banker step in front and say no. A preapproval empowers you with the knowledge that every house you consider can be yours for the taking. It also gives your bids more weight with the seller, who knows the money is behind your word.

However, don’t be in a rush to accept an offer from a lender. Remember it is a two way street. You don’t have to accept the deal they give you right off the bat. It is a wise move to consult with a realtor before you start looking at houses, and even before you have started talking to your bank. A realtor will be able to give you options in lenders you may have not considered. He or she can also advise you of the quality of the loan you have been offered. If you have been turned down before, there may be another lender your realtor has worked with that will be able to help. It is always better to consult the professionals before giving into offers that may result in being beneficial to the lender, but landing you in a sticky situation in a few years.

 

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