CHAPTER 16 How to Choose the Right Home Loan—Without Costly Mistakes 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 transition into the next chapter of your life, 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 YOU NEED TO GET PRE-APPROVED
Sellers and listing agents require a pre-approval before taking an offer seriously. It also strengthens your offer: in competitive situations, listing agents often contact the lender directly to verify the buyer’s financial strength. 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 138
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