While shopping for a home may be pleasant, serious buyers need to start the process in a lender’s office, not an open house – and by obtaining a mortgage pre-approval. This process, basically an evaluation that determines whether the borrower qualifies for a loan, is important for several reasons.
First and foremost, in today’s real estate market, most sellers expect buyers have one, and may only negotiate with people who have proof that they can obtain financing. Second, would-be homeowners learn the maximum amount they can borrow. They can also have an opportunity to discuss financing options and budgeting with the lender. Finally, if there is any problem with their credit, they’ll get a heads-up about it.