Education for Buyers

Loans – Before or After?

Should I Shop for a Loan BEFORE or AFTER I Find a Home to Buy?

It's a good idea to let an agent help you look for financing BEFORE you find a home. The agent is in regular contact with many lenders and can act as an invaluable "clearing house" of information. If you are actively house hunting but have not found the right home yet, ask the lender to do a "screening or pre-qualification application". This details your income, debts, and assets.

Knowing where you stand concerning how much money a lender will lend you (based on your income and credit rating) puts you in a good bargaining position. Sellers faced by deciding between two buyers will often favor the "pre-qualified" buyer. This buyer is the one for whom getting a loan is a sure thing.

Next: Coming Clean with Credit