Things to do Before the House Hunt

Pre-qualification is an essential part of the home purchasing process that can save you time and money. It is conducted by the real estate expert you are collaborating with before you eagerly begin the house hunting to determine a price range you can afford. Your realtor will ask you things about your income or credit status to know your ability to obtain a mortgage. Don't worry, he/she isn't trying to pry you; he/she just has to know all these. After all, the realtor isn't your tour guide; he/she is someone who can help you find a home that you can pay for.  Casual discussion about regarding your financial situation lets the agent have the information needed to show you houses that suit your budget.

If you don't like the idea of pre-qualifying you can opt to get pre-approved with a lending institution prior or during the house hunting process. It is actually a better alternative since pre-approved home purchasers will not only know earlier the price of the home they can pay out, but their pre-approved status gives  them clout with real estate agents and sellers at the negotiation of the sale price. Another edge of pre-approval is that it quickens the loan process after a purchase contract is signed - hence, avoiding any last-minute regrets after the house is found. To top it all, many agents will not take on any offer unless it is came with a pre-approval letter.

The pre-approval process does not present significant troubles, because here, the loan officer has his/her eyes on your business - that's how they get paid.

Here are two tips on getting loan approval:

1. DO NOT disclose fake letters or go for secret financial arrangements. There are only particular instances where in you can borrow the down payment - and if you do so, you must submit the loan as a liability to be looked at in qualifying for the home payment.

2. You should list your assets and income, debts and the estimate amount you owe - PRECISELY.

For transactions like this, it is best to employ a trusted third party service to make sure that everything is fair and square. In California area, there is a California escrow service that you can hire.