Imagine finding the property of your dreams, only to have your loan application denied.  Countless hours spent searching, not to mention your emotional investment - wasted!  This can be an incredibly disheartening experience.

To prevent this from happening, I earnestly recommend that you first get pre-approved for a mortgage.  Pre-approval will let you know exactly how much you are able to afford.

Pre-approval shouldn't be confused with pre-qualification.  The latter can be performed with a lender over the phone, where they make an assessment of your borrowing potential based solely on the information you give them verbally.

Pre-approval, on the other hand, is obtained through the verification of documented information.  Credit and employment histories are verified, as well as your income and cash-on-hand.  This will give a lender a realistic portrayal of your borrowing potential.

This also helps you determine if there are any surprises on your credit record, and allows you to deal with them ahead of time.  There are many horror stories regarding a credit history soiled by someone with a similar name, or even due to clerical errors.  This is your chance to ensure you will not be adversely affected by such unforeseen events.

Perhaps most importantly, getting pre-approved puts you in a stronger negotiating position when you put in an offer on a home.  It assures the seller that you really are a serious Buyer.  When faced with several offers, a seller is far happier accepting an offer from a pre-approved Buyer over a pre-qualified Buyer - even if the pre-approved Buyer comes in with the lower offer. Remember, the pre-qualified Buyer has simply provided verbal information about his/her financial situation. Full document verification is still lacking. So, the Seller has no idea whether this Buyer is even capable of making the purchase.  Pre-approval, however, is the next best thing to cash-on-hand.  It tells the Seller that the mortgage company has confidence in this Buyer and is willing to extend him/her a loan.

So, if you are looking to purchase a new home, please do get pre-approved first and discover exactly how much you qualify for.
Doing so may save your from some unnecessary surprises, and it will put you in a much stronger position when you ultimately find that house you have been looking for.

Please do contact me for more information about the loan officers I have learned to trust.