You’ve been pre-approved! Here are your next steps

You’ve been pre-approved for a mortgage. Congratulations! A pre-approval is an important step in the home buying process. Securing your pre-approval is certainly a milestone, and you should take a moment to celebrate. However, now the real work begins! Your pre-approval is your kickoff into the housing market, and there’s lots to do before you can officially call a new property your own. Here are some of the key items you must take care of now that you have cleared the pre-approval hurdle.

Search for a real estate agent

After you get pre-approved, it’s time to get to work. This starts with finding a real estate agent to represent you in the housing market. Once you are ready to tour homes, you will want a professional on your side who can find suitable properties, arrange viewings, and help you submit appropriate offers. A good real estate agent will make your experience in the market much smoother and simpler. They can scope out listings that meet your budget and housing needs, which ensures you won’t waste time looking at properties that don’t fit you. Plus, submitting an offer on a home is a big step, and you will definitely want an agent on your team. With their guidance, you can be confident you are submitting a fair offer, and one that appeals to the seller. When looking for a real estate agent, do some research on local agents, and ask friends and family if they have any recommendations. Take your time on this step, because your agent will be working very closely with you throughout this process. It’s important that you get along and that you trust them with this important journey!

Confirm your purchasing budget

It’s important to note that your pre-approval amount is not necessarily what you can really afford. You still need to plan out an accurate budget and not purely rely on the results of your pre-approval. This is true for a couple of reasons. First, your pre-approval only considers your financial situation at the time it was granted. This means if you experience a loss of income, or have to take on an additional large expense, your pre-approval will not reflect these changes. Second, pre-approvals assume your mortgage is your largest financial liability, and your top priority. Other debts you may have are not given careful consideration when you are pre-approved. With this in mind, it’s very important to work out a proper budget. Think of your pre-approval as a foundation to help you build your budget.

Of course, creating a home buying budget can be extremely tricky and overwhelming. This is why it’s also important to get a mortgage broker involved in the process! We can work with you to review your finances, analyze the housing market, and accurately determine what you can afford.

Begin house hunting

This is likely the most exciting part of the homeownership journey! Once you are pre-approved, know your budget, and have a real estate agent, you can start viewing potential properties. In addition to your budget, you should also know what you need to have in a home. For example, things like property type, size, and location can all be important factors for buyers. As we mentioned above, you only want to tour homes that fit your criteria. Make a list of your housing requirements, which are the things a home must have in order for you to submit an offer. You can also think about your “nice-to-haves,” which are things you would like to have, but aren’t deal-breakers. This might include things like a finished basement, an extra bedroom, or a large yard. Each buyer has their own set of needs and wants. The more specific you can be about yours, the easier it will be to find that perfect property. 

Secure your final approval

You have found a home you love, submitted an offer, and it has been accepted by the seller. At this point, you are so close to the finish line! However, there is one final obstacle to clear. It’s time to finalize your mortgage financing. Remember, your pre-approval was only an estimate of what you might qualify for, and it holds no guarantee of financing. Working with your broker, you can determine which lender and product you think would fit your mortgage needs best. Then it’s time to submit your application! If you have kept your finances the same, and the market has not experienced any major shifts, you are likely to be approved for a similar rate and product as your pre-approval. However, do not automatically assume this will be the case! Each buyer, lender, and mortgage product is different.

Getting pre-approved is a big accomplishment once you decide you want to purchase a home. It is the first major step that officially places you in the housing market. While there is still plenty to do, your pre-approval is a sign you are on your way to becoming a homeowner!

If you have any questions about your mortgage, get in touch!