Establish “big picture”:
What are we trying to accomplish? Timing, other considerations, etc.
Determine initial home search criteria:
- Price Range
A pre-approval through a lender gives you a better negotiating position and no surprises.
What is mortgage pre-qualification?
Pre-qualification means that a lender has evaluated your creditworthiness and has decided that you probably will be eligible for a loan up to a certain amount.
Why is mortgage pre-approval better?A pre-approval letter is the real deal, a statement from a lender that you qualify for a specific mortgage amount based on an underwriter’s review of all of your financial information: credit report, pay stubs, bank statement, salary, assets, and obligations.
Identify and view homes:
Process of elimination, develop a sense for comparative value.
Evaluate best choices:
Estimate market value and negotiating position based on neighborhood value, sales of similar homes, owner’s motivation, etc.
Submit written offer:
Price, inclusions, earnest money, financing, closing date, etc.
Negotiate an acceptable contract:
“Signed, sealed, delivered.”
Satisfy contract contingencies:
Financing, inspections, attorney’s approval if applicable.
Prepare for closing:
Insurance policy, balance of down payment, change utilities over, etc.
Move into your new home!!