“Putting the cart before the horse”, metaphorically, means doing something out of logical order. This certainly applies to buying real estate and it occurs everyday.

So, let’s talk, first things first. Before viewing properties with an agent, you should speak with a mortgage broker or bank to get pre-approved. The pre-approval process will give you a sense of how much you can borrow to purchase a home. Additionally, if you have current credit score issues, you can get a plan to cure some of those problems.

It’s important to understand what price range will be realistic for you. Any seller will also require having a pre-approval letter to submit with an offer. Before sellers negotiate with a buyer, they will need to be assured that you can qualify to purchase their home. Once an offer is negotiated, the house listing is noted on the local Multiple Listing Service that it is under agreement. Most sellers will only do this with a buyer that has a pre-approval letter.

A pre-approval letter will have a time frame up to 90 days for you to search for a home and come to an agreement. Being organized during the search with a local agent will help you utilize the pre-approval letter you have in hand.

Go on your search for a new home. Once you negotiate the offer, you will contact your mortgage broker or bank and begin the mortgage processing. Banks have stricter guidelines regarding what is necessary to complete a mortgage application. Some items that will be requested are past W2s, bank statements, tax returns, and recent pay stubs. Credit scores will also be secured at this time. So, gather all of your financial papers and information for the bank as early as you can. Pay stubs may also be requested a few days before closing to confirm that you are still employed. Requests from the bank have to be responded to in a rapid fashion. Being prepared for those requests will speed up your home purchase process.

So, don’t put the cart before the horse on your real estate purchase and reach out for assistance from real estate and mortgage professionals who will guide you along the way. Visit our site for Connecticut Home Mortgage if you need assistance.