One of the first questions I ask a potential home buyer is, “Have you been pre-approved for a mortgage.” Sometimes the response I get is a simple yes, while other times the buyer just gives an offended look. I don’t ask the question to be nosey. I ask it because it is vital information needed to determine if you the buyer are ready.
A buyer who has not been pre-approved is not ready to look at homes. Yes, you may think you know what you can afford, but until you sit down with a lender you don’t know what you can borrow. As a buyer you should know the costs associated with buying and financing a home before you start to look. Lenders take more than just how much you make into consideration.
