Very basic first time buyer question

**dinasour** · 03-16-2010, 09:37 PM

Hi

I am a first time buyer trying to figure this maze out

I have a very basic question.

Should i get a pre-approval from the bank/lender before starting my home search or do i start looking for houses and go the lender once i like something

Whats the right approach or the approach that works most

Thanks and sorry for my ignorance

**nicaben** · 03-16-2010, 10:47 PM

get pre-approved 1st. you need to know what you can afford and what you can qualify for. also, almost all sellers and selling agents will require a pre-approval letter with an offer. most wont even consider you until you can show them you can afford the home. a good broker or loan officer can also help develop a budget and get the right product to suit your needs.

**maui** · 03-17-2010, 01:01 AM

The days of houseshopping, writing offers and THEN going to the bank are long gone. You should first get pre-approved before starting your home search. By doing so, you will know exactly what price range you can afford (there is nothing worse than finding your dream home and then finding out there is no way you can get financing for it). Anyway, good luck and keep browsing this site, it's a great source of information.

**Chrisopher Moltisanti** · 03-17-2010, 03:22 AM

Right! Get that pre-approved letter from the bank FIRST. It will tell you how much they'll lend you.

Bring that letter to your Realtor. Ensure it says if it's a conventional loan or an FHA backed loan and how long the offer is good for. Usually it's for 90 days. If after ninety days you and your Realtor don't locate something (which has happened and only know how picky you are), you'll have to start the pre-approval process all over again. Depending on your bank, this could be a long time or a short time. I know people personally at several banks, they get people pre-approved within two hours. But, your banker may have hurdles involved. Nonetheless, get that paperwork first.

A word about affordability: Look, only you know what your income and outcome is. Input must trump output or you'll be house poor. Very simple. If your income now (from all sources) allows you to live in a two bedroom apartment for $850 a month and you can keep the heat on and pay for groceries, ENSURE YOUR INCOME will allow you to live in a home.

If you don't add in ALL your expenses from Alka Seltzer to Zicam, you'll be sorry. You need to know your monthly budget. This WILL include now: home owner's insurance, taxes, electric and water. Some of these too: Cable tv, cable modem, upkeep on the car. Lunches for work everyday. A lawn mower. Garden tools such as a rake. Add in everything you can think of. You don't want to look like a shlep in two months by taking on more than you can handle.

Good luck now.

CM

**markbrian** · 03-17-2010, 06:18 AM

Some agents in my area specify that all offers must be accompanied by a pre approval letter or proof of funds. Especially true for foreclosed homes. Any offer on one of my client's properties for sale that is not accompanied with a POF or pre approval letter is not going to be considered as strong as one that is.

I think that determining your price range and budget is the first step. Looking before you do this is wasting your time and I am sure you are a busy person.

**Bones** · 03-17-2010, 07:34 AM

Get preapproved first. Here in Michigan many of the listed homes are foreclosures and the banks won't even look at your offer without that letter from the bank.

**Chrisopher Moltisanti** · 03-17-2010, 08:49 AM

Some agents in my area specify that all offers must be accompanied by a pre approval letter or proof of funds. Especially true for foreclosed homes. -Exactly. One or the other. And new buyers: Bring This Paperwork With You When You Hook Up With Your Realtor. Don't leave it at home.

Any offer on one of my client's properties for sale that is not accompanied with a POF or pre approval letter is not going to be considered as strong as one that is. -Without one or the other, agents aren't going to waste their time; things are bad enough the way they are. We have contractual relationships with our sellers that require pre-approved buyers. This means you have to show us that paperwork from your bank; we can't take your word for it. You may be well off, you may be the nicest person walking the Earth however, without that paperwork we can't waste our time.

CM

**First Time Home Buyers** · 03-24-2010, 06:39 AM

Definitely need to get the finances checked out first. You may not be able to afford what you think you can.

Better to find that out first, then go look at houses accordingly.

**Sabir** · 03-25-2010, 04:59 AM

Yes you can get it from your bank their is no harm in that. In my view you will get it as you applied 4 that. Good Luck :-)

**allisonays** · 03-26-2010, 06:54 AM

If you don't want to waste any time, you have to get pre approved loan on bank so you can know how much money they can lend you. And of course in looking for a home to buy, look on those homes that you can afford again do not waste time in looking for homes that are out of your budget range.