CHAPTER 16 How To Choose The Right Home ht Home Loan Some homeowners who are downsizing can purchase their next homes outright, while others will need financing. If this is the case for you as you, it’s important to shop around to find the loan that best suits your needs. It’s wise to begin loan shopping before you even start the home- search process. Too many buyers spend time touring homes—caught up in the excitement of what’s available—only to become attached to a property they ultimately can’t afford.
This chapter takes a closer look at the steps involved in navigating the home-loan shopping process.
Why do you need to get pre-approved? Sellers and listing agents require a pre-approval before taking an offer seriously. When multiple offers are on the table, the most qualified buyer is far more likely to win. Shopping for a loan: Home loans aren’t one-size-fits-all. Banks, credit unions, and mortgage brokers all offer different terms, rates, and fee structures, so it’s worth comparing more than one option before committing. Focus on what fits your budget long-term—not just what looks attractive upfront. Most importantly, lender approval does not equal affordability. Just because you’re approved for a certain amount doesn’t mean it’s wise to borrow it. Some loans stretch buyers beyond what’s 118
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