Your Real Estate Professional : Joseph Witt

Don't go out and look at a 750K house because you think you can afford it or a 200K condo because you think that is all you could possibly get. Call a loan officer and in 15 minutes they will have you pre-qualified.

What will a lender need from you to get pre-qualified?

Credit report (which they will pull)
Verbal on your income
Verbal on your debts
Verbal on job history
Verbal on what your assets are

Know that to get Pre-Approved, this will all need to be documented (so don't make up numbers or jobs). However, a verbal will be enough to get you started.

Why is it so important to get pre-qualified before you start looking at a places?

Expectations - If you start out looking at 1 Million Dollar homes and start planning your life in one of these, when you find out that you can only afford a $500K home, you will be very disappointed and nothing that you look at in the $500K range will fit into your expectations. The reverse is also true. You may start looking at $200K homes and decide that there is nothing out there for you, when in actuality you qualify for $500K.
Time - Once you are pre-qualified, you have a target and you can narrow down your search to what is in your price range as well as your other parameters. This will save a TON of time in your search.
Offer Strength - Your offer will be so much stronger when you attach a pre-qual letter to it. Even stronger than that would be a Pre-Approval Letter. A seller will take you much more seriously. In some cases, the offer will not even be considered unless one of these letters is attached. When I am the listing agent, I demand it and talk to the lender before we accept or counter. This way I know exactly how strong the buyer is.
Requirement - At some point before you buy (unless you are buying with cash), you will need to do this, so get it done up front. As a buyer's agent, I demand this before I even start the car to show homes.

A couple more words of wisdom before I sign off: Just because you qualify for $500K does not mean you need to buy a $500K house. Talk to the lender and understand the different loan programs. Understand what your payments will be with Principle and Interest (P&I), taxes, insurance. Then factor in utilities, upkeep and misc costs. Make sure that you are comfortable with your monthly expenses. Make sure your monthly payments fit your lifestyle and goals.

Hope this helps! I have a couple great Loan Officers on hand if you need to get pre-qualified!

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