Shopping for a home may be exciting and fun, but serious homebuyers need to start the process in a lender’s office, not at an open house. Most sellers expect buyers to have a pre-approval letter and will be more willing to negotiate with those who prove that they can obtain financing.
Potential buyers need five essential things—proof of assets and income, good credit, employment verification, and other documentation—to get pre-qualified for a mortgage.
Pre-qualification vs. Pre-approval
A mortgage pre-qualification can be useful as an estimate of how much someone can afford to spend on a home, but a pre-approval is much more valuable. It means the lender has checked the potential buyer’s credit and verified the documentation to approve a specific loan amount (the approval usually lasts for a particular period, such as 60 to 90 days).
Potential buyers benefit in several ways by consulting with a lender and obtaining a pre-approval letter. First, they have an opportunity to discuss loan options and budgeting with the lender. Second, the lender will check the buyer’s credit and unearth any problems. The homebuyer will also learn the maximum amount they can borrow, which will help set the price range.
Find the Location that Fits You
No matter which Colorado neighborhoods interest you, it’s important to get to know the area before you buy. Learn about Colorado cities and specific neighborhoods to identify areas where you might want to live and narrow your home search to these areas.
Connect with a Realtor
An experienced real estate agent makes the home buying process simple. Your agent can provide valuable insight and guidance as you search homes for sale in Colorado. Find a real estate professional that you can trust – someone with local knowledge about Colorado neighborhoods
, expertise in the real estate industry, and insight about the housing market in the area you’re searching.