Positively and abosolutely the most important first step all potential home buyers need to do is to secure the neccessary financing that will be needed to make a home purchase. Getting "pre-qualified" today is a very simple process that can be done with a lender, usually over the phone in approximately 15 minutes of time. However obtaining "pre-approved" status involves doing an application and submitting written documents proving what you have stated in the "pre-qualifying" process. Thus being "pre-qualified" does not mean you are "pre-approved". If the lender you are talking to does not do home buyer full credit "pre-approvals", prior to your making an offer to buy a property, go to a different lender that does. When it comes to making contract offers and actually buying a home, only the full credit "pre-approved" buyer is the one that can absolutely obtain the loan. The lender will provide you with a letter so you can prove your status.

A fully pre-approved buyer can make an offer to buy a home with confidence that the financing will go through and will only be subject to a property appraisal. The seller of the property will accept your "pre-approved" mortgage status over an offer that is subject to the buyer obtaining a mortgage. You could actually buy the home for less money in some cases, because the seller has confidence that the offer will go through. A buyer making an offer to buy a home without being pre-approved risks the possibility that if his loan does not go through he will have to pay expenses that could have already been incurred i.e. appraisals, survey, home inspections, etc These expenses could easily be $500+ in the early stages, and the buyer would be forced to pay them not the seller if his financing did not go through. Not being "pre-approved" can also be a costly mistake.

Do not, in any case, let past problems i.e. credit, debts, etc deter you from trying to get pre-approved for a home loan. Most lenders today have "special" programs for every situation imaginable. Do not give up when one lender says "no", try several. Do not listen to advice of friends or relatives either. Mortgage approval criteria has changed drastically in recent years and today a vast majority can be "approved" for a home loan. If you are turned down, most lenders will inform you of what you need to do to get "approved" in the future, so your time spent will help you later on.

Most realtors will not give their time to buyers who will not go through the process of being "pre-qualified" then fully "pre-approved". It is only logical that buyers must know the price home they can afford, and can complete their offer to buy.

Begin the Prequalification process