So, thinking of buying a new place to live or something to invest in, are you? If you want your buying experience to be both fruitful and harmonious, there are a few things you should be aware of before you begin the process.
Whether you are a cash buyer or will be needing to take out a mortgage, the first thing you need to know is how much money you are going to invest in your new purchase when all is said and done. This is not a cut-and-dried question with a simple answer unless you are strictly an all-cash buyer. Therefore, either you and Jim or a mortgage lender and you need to have a frank discussion before you can really even logically begin your search. This is called the Prequalification step.
The next step is a natural progression after being prequalified. It is to continue working with your chosen lender until you are tentatively pre-approved to buy up to a certain amount. This is important because sellers (should) require a pre-approval letter to be submitted along with your offer to purchase; and, even if they don't, if there is another offer on the table by someone who has been pre-approved to buy, that offer will be considered better than yours and given first consideration. Therefore, please, do not hesitate to get started immediately, nor be taken aback nor offended if Jim asks for the name of your mortgage lender or insists that you contact one. This is for YOUR benefit!
The following points touch upon this and other topics you should be aware of as you begin the process of looking for your next home: