to avoid foreclosure by selling their current home and then purchasing another are so eager to get the process going that they want to dive in, head-first, without doing the appropriate financial research and preparation. Many aren’t sure they can even afford it, but believe that once they’ve found the right home, they can simply “make it work.” This is a major mistake. If you’ve already started checking out homes in person, going to open houses, without first talking with your bank or other home loan lenders to obtain a pre- approved loan, and without a buyer’s agent to work alongside you, this is a mistake that can really hurt you. It shouldn’t come as a surprise, but the truth is that many listing agents won’t want to work with you if you promise them a certain amount and then end up not being able to fulfill that promise because you don’t have the approved home loan to back it up. Your own assumption about what you can afford — both the down payment and the monthly mortgage payments, among other costs — can contrast significantly with what the bank is willing to lend you. This is especially true if you have poor credit or unstable income. Please refer to Chapters 16 and 17 regarding steps you need to take before the home-search process to ensure that your credit and finances are in good shape and you’re ready to make the jump back into homeownership: ; ; Improve your credit score. ; ; Start saving up for a down payment and closing costs. ; ; Build up your savings account. Please ensure you have official pre-approval for a home loan before visiting properties and placing an offer. If you work with a qualified buyer’s agent, then they will help you make sure
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