Get Preapproved Early in the Process

Des Moines Mortgage Preapproval

One of the first steps in purchasing a home should be getting pre-approved for financing. By getting pre-approved early in the process you will be able to focus your search and eliminate surprises and disappointments later. Getting pre-approved should be a simple process. Your realtor can recommend qualified loan originators in your immediate area. Once you decide on the person you are most comfortable with, you should meet with your loan originator and discuss your goals including desired purchase price, available down payment and timeframes. The lender will have you complete a loan application (sometimes this can be completed in advance of your meeting but filling out an online application) and your loan originator will review your credit, verify your income and employment, and recommend the most appropriate type of financing. You will then know: 

  1.  What price home you will qualify for
  2.  The amount required for a down payment
  3.  How much your monthly payments are estimated to be.

At that point shopping for a home will be much easier since you will know that you can get financing and what price range you should be focusing on. As part of the pre-approval process you will receive a letter from the loan originator that documents you approval, this can be a valuable negotiating tool. The letter will confirm that you can obtain financing, and will give you a negotiating advantage over buyers who do not have it. In most cases sellers will require a pre-approval letter before final acceptance of a purchase agreement.