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Home Buying 101- Why is it important
to be pre-approved for a home loan?
By Martina Erdmeier
Broker-in-Charge
THE REAL ESTATE BOUTIQUE
“Personalized Service-Outstanding Results”
Getting pre-approved for home loan should ALWAYS be for a down payment. Your lender will also educate you
the first step in the home buying process. on the different kind of loans available to consumers. For
example, just because you qualify for a VA loan, it might
Here is why: not be the best option for you.
• It tells you how much you can borrow
• It tells the seller that you have the buying power to back As always, it helps to shop around and explore all your
up an offer options.
• It signals the REALTOR® that you are seriously look-
ing for a home Be ready to provide your lender with personal and finan-
• It alerts the lender that you might be taking out a mort- cial information such as
gage • Checking/Savings Accounts
• Retirement accounts
Once you decide to start looking for a new home, getting • Other assets
pre-approved for a home loan helps you to set realistic • Info on property you currently own
expectations about what you can afford. Once you have • Income and employment documentation
received pre-approval for a certain amount, you can focus • Info on your debt/liabilities
your search on homes in this price range.
Please keep in mind that in North Carolina, a pre-approv-
Also, during the pre-approval process, you will get alert- al letter or proof of funds will need to be part of an offer to
ed to potential problems – you may need to pay down purchase a home – make sure you are prepared and ready!
current debt to improve your debt to income ratio, correct
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inaccuracies on your credit report or simply save more Harnett Life ~ Summer 2020
Harnett Life ~ Summer 2020 Page 33