Pre-Approval

You're buying a home. Your first one. You want to be taken seriously by the sellers. You want them to know you've made it. You're big-time. You can afford this house.

So...what do you do? Well, you need to go through the hoops of getting pre-approved for a loan.

What does that mean? Well, it means you fill out a few forms, usually for a mortgage broker, who then sends you a note that you can show the sellers' realtor. It basically says, "This mortgage broker has reviewed the applicant's numbers and, if they are accurate, I don't believe there'll be any problemo in them getting a loan...but it's all subject to verification, and I have no legal liability here in providing the loan."