So you are ready to make the first step in purchasing a home, and want to know what to do first? Then, this article is for you…. True, you can start your car up, drive in any area, and search for neighborhoods that you want to live in. But, before you do. I want you to consider the price of gas right now. Before you get your heart set on that dream home and burn gas going address to address there is something you should know first. You need to get an Approval by your lender first. Noticed I didn’t say prequalification, but I said approval letter. So what is the difference between prequalification and approval. Glad you asked….

Prequalification occurs before the loan process actual begins. This is the first step after initial contact is made with the lender. During this process, the lender or mortgage broker gathers information about your income and debts, and makes a financial determination about how much you may be able to qualify for. This process is normally your initial contact with the lender.

This is also where the lender will pull a credit report to see if you qualify for some of there promotional programs. (Note: Consult with your lender to find out what programs are available.)

Approval goes a step further than prequalification. It is when you turn in all the necessary documents in to a lender. These documents may include w2 forms, tax returns, etc. Once the Lender has the documents these documents are turned into the processing department. The processing department prepares your documents for underwriting.. The lender will then have your Approval letter based on all the documents being turned in.. They will also let you know the maxium amount loan you are able to finance.

Once you have this approval letter you are ready to call up your local Realtor or start driving looking for homes. Think about this for a second…… If you where to present an offer to a seller and you have an approval letter in your hands from your lender, you become a very strong candidate when it comes time to put an offer in on a home. Also you can present your offer with confidants knowing that your lender is behind you…. It also makes the transaction go a little smoother on the lending end….

So Your Next Assignment Before You Go House Hunting:

• Get all your documents into you lender and get a Approval Letter!

Remember: If you are in the DFW Metroplex Area or thinking about moving to DFW Metroplex feel free to browse my site at: http://www.sellorbuyhomefast.com/