Step 5: GETTING PRE-APPROVED | First Time Home Buyer's Guide

So you have the Credit Score, the Downpayment, you know How Much Home You Can Afford and now you choose a Lender. Now, we're going to talk about is "Getting Pre-Approved". Before we jump please don't forget to like this video, subscribe to our channel, and turn on notifications so you're the first to know when we post new videos.

Now let's talk about "Getting Pre-Approved". So, you've already done your research, you know your credit score, you have a down payment saved up and you know how much home you can afford.

The first thing to understand is that getting pre-qualified is not like getting pre-approved. Getting pre-qualified is simply giving the lender some information about your finances; based on that, they give you a loan estimate.

Getting pre-approved is providing the lender with documentation of all your financial information and they'll do a more thorough review to give you a specific loan amount you're approved for. A Pre-Approval will tell you how much the bank is willing to lend you, and that's the number you'll work off of when looking for your home.

It's essential to get pre-approved because it gives you a realistic idea of what you can afford. It also makes your offer stronger to sellers since they know you're approved for a loan.

Getting Pre-Approved will show buyers that you are serious and ready to buy a home. It will also allow your agent to move more quickly when they find the right property for you because you'll already have the loan in place.

Also, remember that most Pre-Approval has a time limit, so you'll want to be sure you're ready to buy a home within that time frame.

If you're not quite there yet or need help with any part of the home buying process, we have experts standing by to answer all of your questions. We hope this video was helpful, and we'll see you next time. Please don't forget to like this video, subscribe to our channel, and turn on notifications so you're the first to know when we post new videos. Please stick around for the next step "How to Find a Real Estate Agent".