Take advantage of loan prequalification
I recommend a prequalification meeting with a mortgage broker before beginning a search for a new home. Being prequalified lets you now how much house you can afford and allows me to make a solid offer with the knowledge that you’re able to complete the sale. A stronger negotiating position can save you money.
Being prequalified isn’t the same as being pre-approved. When you first meet with a mortgage broker, she will ask to see your down payment and have a look at your income records. These will provide a framework to estimate the size of mortgage that you can qualify for.
A pre-approval is a closer look at your finances with confirmation done by the bank. When the lender is satisfied that you’re able to repay the loan, they will give you a letter of commitment, which is a contract to loan you the money.