Do Your Homework By Going Home Shopping
by Ellise Walsh

It is vital to shop around carefully for any major purchase, and a home and a mortgage are certainly no exceptions. A home is the most important purchase most people will ever make, and it will most likely form the core of your asset base. Finding the right home, and the right mortgage to allow you to purchase that home is of primary importance.

It is a good idea for the potential home buyer to do some shopping around to get a feel for the home buying and home selling environment in his or her neighborhood. It is a good idea to set some parameters ahead of time. Decide on things like what towns you want to live in and which ones you absolutely don’t. Try to narrow down the type of house and the type of neighborhood. Doing so will help you focus on the houses that most interest you. Do you like the look and feel of an old established neighborhood or is a brand new sub development the right choice for you? Do you prefer the convenience of a one story home or would you rather have the charm and space of a multi level home?

Even if you are just shopping around, it is a good idea to get pre-qualified or pre-approved for a mortgage. You may not think this is important, but what if you stumble on your dream house the first day you shop? The last thing you want to do is find the home of your dreams and be unable to make an offer or qualify for a mortgage. You can choose to be pre-qualified, which means that the bank or mortgage lender gives you an idea of how much you can afford to borrow, and a letter stating that amount, based solely on the information you provide.

Or, you can choose to become pre-approved. With pre-approval, the bank or mortgage lender actually runs a credit check and verifies your employment and salary information. A pre-approval is a much stronger document and it means that you will qualify for a mortgage up to the amount stated on the pre-approval letter.

If you take the time to get pre-approved, or at least pre-qualified, for a mortgage loan, you will find it much easier to work with the real estate broker as well. Real estate agents are often reluctant to work with someone they feel is less than serious about purchasing a home. By having a pre-approval or pre-qualification letter in hand you can prove to the real estate agent, and to the home sellers, that you are serious and that you can afford the home you are considering.

Once you have your pre-approval documents in hand, it is time to start looking at houses. Try to look at many different houses in many different neighborhoods. Use the power of the internet to find out what comparable houses have sold for. There are even places online where you can take virtual tours of houses before you look at the actual home. These virtual tours can save you a lot of time by screening out unsuitable homes. Try to relax and have fun – after all buying a home should be an exciting and fun experience.

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