What happens after you secure your pre-approval?

You’ve been pre-approved for a mortgage! This is a very exciting step in the home purchasing process, because it tells you where you stand in the market, and what kind of financing you may qualify for. Once you secure your pre-approval, what happens next? Remember that your pre-approval is just an estimate from a lender, and is not a guarantee of financing. However, this points you in the right direction in terms of where to go next. Here are some important next steps in the buying journey.

Find a real estate agent

Not only do you need to find a real estate agent, but you need to find one who is a good match for you as a buyer. Not all agents are the same, so it’s essential to take the time to select the realtor who will represent you best. For example, real estate agents can have different levels of experience with different types of properties, buyers, and locations. If you are a first-time buyer, you will want an agent who has lots of experience working with new buyers in the area you are hoping to purchase. Be sure to take the time to research different agents, and ask them about their work. Your realtor will help you find properties to view, and determine a competitive offer price, so they are a critical part of your purchasing process!

Determine your budget and housing needs

Your real estate agent and your broker will be very valuable resources during this part of your buying journey. Before you start viewing homes, you must determine your buying budget. Your pre-approval gave you an estimate of financing you may qualify for, but don’t automatically treat this as your budget. A pre-approval assumes your mortgage is your number one financial priority, and doesn’t necessarily take into account other expenses you might have. Your pre-approval and your approval will never be completely accurate, so it’s important to work with your broker to finalize an appropriate budget. Your broker will go over your income, expenses, debts, and assets to find how much you can truly afford to spend on a home.

Apart from your budget, you will also need to think about your housing needs. This considers the requirements your future property must have. You may need a certain number of bedrooms, access to public transportation, or an accessible home, for example. Try to just think about your housing needs, and not your wants. You can narrow down your nice-to-haves later, but at this point it is important to focus on your housing requirements.

Start to view properties, and submit an offer!

After you secure your pre-approval, you will eventually need to start looking at homes! This is an exciting time for many buyers. If you have properly prepared by finding your true budget and housing requirements, you will save yourself time by only viewing homes that suit your needs. Otherwise, house hunting can feel a bit overwhelming and stressful. Your future self will thank you for taking the time to do this!

When you find a property you love and want to purchase, it’s time to make an offer. This is the moment you have been working toward for quite some time! You can discuss your offer with your real estate agent to determine an appropriate offer. Make sure you take your time and find a home you truly want to live in before submitting an offer!

Complete mortgage financing 

Finally, once your offer is accepted, you will need to complete your mortgage financing. At this time, you will need to secure your final mortgage approval. You might want to use the lender who granted your pre-approval, or you might want to shop around and look at other options! Your mortgage broker can help you narrow down the best option for your mortgage needs. If you have kept your financial situation steady since securing your pre-approval, you are likely to be approved for a mortgage product that looks similar.

Once you secure your pre-approval, you are well on your way to purchasing a home. However, don’t take your foot off the brake! After your pre-approval, you must complete these important steps before you can officially buy your new property. Don’t forget how a mortgage broker can help you move this process along, and feel free to reach out if buying a home is one of your goals.

If you have any questions about your mortgage, give us a call at Centum Home Lenders! You can reach us at 506-854-6847, or get in touch with us here.