CHAPTER 7 Shopping for a Home Loan or a Home Loan
Before you even start dreaming about open houses or falling in love with a Pinterest-perfect dream home, there’s one essential step you need to take: understanding your spending power. Determining how much home you can afford—not just on paper, but comfortably within your lifestyle—is the foundation of a smart home-buying journey. This step is so critical because no one wants to end up "house poor," struggling to cover their mortgage while sacrificing everything else. Proper planning upfront can provide peace of mind, and it all starts with securing the right home loan for your needs. Start With Preapproval Pre-approval isn’t just a box to check—it’s your golden ticket to the home-buying process. Sellers want to know you’re a serious buyer, and having a pre-approval letter on hand will confirm just that. It also gives you a crystal-clear picture of your budget, so you can focus on searching for homes in the precise price point. While you may have already started working with a Loan Originator, I strongly recommend getting a second opinion—especially if your real estate agent has a trusted, local, in-state licensed Loan Originator to recommend. Here’s why this is different from other recommendations, like choosing a home inspector. With a home inspector, you’ll want to make an independent choice to avoid any conflicts of interest. But with a Loan Originator, this is someone who will make sure you are financially viable and guide you through rates, 33
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