Mortgage Pre-Approval – The First Step of Buying A Home

So you’ve decided you want stop paying rent and  be a homeowner in Massachusetts or Rhode Island.  You immediately hit the world wide web and enter in the magic words “buying a home” or “homes in Franklin, MA”, etc. and are inundated with a bunch of websites offering more inventory than other websites.

pig gif

You click on the first one, enter in your info. and start searching for homes in Bellingham, MA or some other town in Massachusetts or Rhode Island.  Then you find another website and you think they have more inventory so you register with that website, only to find it’s the same house. Then you find another website and enter in your info. because that website promises more inventory and you see they have something called pre-foreclosures (see Truth About PreForeclosures).  Before you know it you’re getting daily emails from real estate agents and brokerages with a bunch of houses!  BUT, you don’t know what you can afford, where you want to live, how much it costs to buying a home, etc.  But you don’t care, you just want to start looking at houses!  So you hit the “Request a Showing” button for a few homes and a real estate agent emails or calls you (if you left a valid phone number at registration).  The first question the agent asks is “do you have a mortgage pre-approval” and you say no, but I won’t have a problem, my credit is good.  So the real estate agent gives you the name of a mortgage person they use but you don’t call any.  You set up a time and day to view a house and the real estate agent meets you there and she asks again “did you talk to my mortgage person and get your pre-approval” and you say no.

There is a reason we real estate agents seem obsessed with mortgage pre-approvals and it’s because they literally set the tone for everything!  How do you know what you can afford?  How do you know how much you can be approved for?  How do you know you can even GET a mortgage? Just because you have great credit it isn’t the whole picture.  Lenders look at your debt, your income, how you handle debt, etc.   Yes, the mortgage pre-approval isn’t fun, but it is a necessity.  You definitely want to find out what your pre-approved for so that you can decide how much you want to spend.

Just because a lender approved you for $400,000 doesn’t mean you will want to spend that much – but at least you will have a perimeter.  Always start at the lower price when looking for homes and exhaust that price range prior to bumping up your budget by $25,000 which will, in turn, provide a different quality home.  Never, ever start at the top of your budget because you will have no place to go once you have looked at all the homes in your budget and don’t find anything.  It’s much easier to start at $325,000 and view homes, then increase to $350,000 when you’ve exhausted the $325,000 inventory.  If you start at the top, $400,000 and then try to see homes at $325,000 you will never be satisfied because that $75,000.00 makes an enormous difference in the style of home, location, condition, etc.

Related Articles:
Top 10 Real Estate Tips

Ff you are looking to buy or sell, give the team at Key To The Dream Realty Group a chance and text or call us at 781 269 2195 or email us at

Search for homes now.  Click HERE.
Get your homes value:  Click HERE

We service Real Estate sales in the following Metrowest MA towns: Ashland, Bellingham, Douglas, Framingham, Franklin, Grafton, Holliston, Hopkinton, Hopedale, Medway, Mendon, Milford, Millbury, Millville, Northborough, Northbridge, Shrewsbury, Southborough, Sutton, Wayland, Westborough, Whitinsville, Worcester, Upton, Uxbridge, Blackstone, MA.  We service Bristol County, Massachusetts as well (Attleboro, North Attleboro, Easton, Norton, Mansfield, MA)  and  all of Rhode Island!  We have experts on Cape as well and in the City of Boston and surrounding towns.  We go where you need us to be because we know you want to work with truth-worthy, honest and hard-working real estate agents!  Have car – will travel 🙂  We also have a network around the the country so if you are relocating we can help!

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.