Get preapproved for a home loan

Find out how becoming preapproved allows you to house shop with confidence. Before you apply for a loan, a lender can “prequalify” you. This means they estimate how much financing you could

After you’ve filled out a loan application and the lender has analyzed your credit more thoroughly, they can provide you with a “preapproval” — a written letter confirming the price of a home you can purchase. Getting preapproved lets you and others see, in writing, that you qualify for a specific home loan amount. With your preapproval in hand, you’re ready to look for your new home. The lender will consider final approval of the loan later on in the process, after you’ve found the home you want to buy.

Being preapproved:

•     Helps you narrow your search to properties in your price range;

•     Gives you confidence that you may be able to secure a home loan for a specific amount;

•     Reassures home sellers that your offer is serious because your financing is already in place; and

•     Helps speed the process of getting a mortgage loan once you’ve found a home to purchase.

Finding your home

An introduction to the homebuying process.

There are lots of steps involved in buying a home. But understanding the basics of the homebuying process can make it go smoothly. In this lesson, we’ll explain how you can work together with a real estate agent to buy the home you want.

A family outside a home that has a sold sticker over the “for sale” sign.

Before you begin house shopping, there are several steps we suggest you take: attend a class for first-time homebuyers, evaluate what you’re looking for and how much you can pay, and get preapproved for a loan. To learn more, see the lesson Before you shop for a house.

Select a real estate agent

Read how a real estate agent can help you.

A good real estate agent can help you define what you want in a home, search for homes in neighborhoods that meet your needs, and provide you with data on recent home sales in the area. Agents can also help answer questions about properties that interest you, for example, tax rates and building code regulations. When you find a home you want, your agent can help you formulate an offer and act as an intermediary between you and the seller, smoothing the negotiating process.

A real estate agent handing over the keys to a newly bought home.

How to find an agent

•     Look for agent names on For Sale signs in neighborhoods that interest you

•     Ask your mortgage lender for suggestions

•     Visit the websites of local realty companies

•     Ask family, friends, or neighbors for referrals

Interview at least 2-3 agents. Tell them what you’re interested in. Find out if they have experience in the area where you hope to buy. Ask if they can provide additional information about a property or neighborhood, then see how well and how quickly they respond to your request.

Search for a house

Searching for a house can be fun, tiring, and stressful

Once you’ve found a reputable real estate agent, you can begin to look at houses — while this may seem like the fun part, keep in mind it can become stressful. Follow these tips to make the process as enjoyable and beneficial as possible:

Instructions: Click each phrase to learn more about searching for a new house.

Location, location, location

•     Research the areas you’ll be living in, or want to live in. Use local resources, your agent, and the Internet to find up-to-date street maps.

•     If possible, visit several neighborhoods to get a feel of the community. Talk to people in local stores and restaurants.

•     Try to get a feel for the traffic you and your family will experience every day. Is rush hour unbearable, or will your neighborhood consists of two-lane streets with limited traffic?

    Learn more about the different school districts in the area. Pull up school’s report cards from the state’s education website and then visit the schools.