When you decide to buy a home, or even before you actually decide to buy, just going out and looking at properties can be fun.

Ever wonder why all Realtors ask you, "Have you been prequalified?" It's an annoying question when you JUST WANT TO GO LOOK AT HOUSES!

Well, we just want to save you heartache ...

Once you're under contract to buy a home, the worst feeling in the world is to have your mortgage application denied. Not only do you lose the home, but you'll lose the hundreds of dollars on loan fees and inspections and escrow fees.

Even worse, you've lost the home you've probably spent countless hours searching for and a great deal of emotional energy to secure it. Most sellers won't be willing to wait for you to search for another home loan.

How can you avoid the heartache of losing a home? By talking to a lender FIRST.

Prequalification is an informal discussion between borrower and lender. The lender provides an opinion of the loan amount that you can borrow based solely on what you, the borrower, tell the lender. The lender doesn't verify anything and is not bound to make the loan when you're ready to buy. He will issue a "prequalification letter" to be submitted with your offer.

Preapproval is a much more rigorous process, which is why we prefer it. Loan approval is based on documented and verified information regarding your employment, income, liabilities, and the cash you have available to close a loan. The only thing the lender can't preapprove is the property you intend to buy because, of course, you haven't found it yet.

A lender's preapproval letter is considerably stronger than a prequalification letter. In a multiple offer situation where more than one buyer bids on a home at the same time, buyers who have been prequalified have an advantage, and if you've been preapproved, you have the advantage over everyone!

It doesn't matter whether you're in a sellers market or a buyers market. If the home is priced right, there WILL be multiple offers that you'll be competing with. The one buyer with the full preapproval will move directly to the TOP of the stack. That's where YOU want to be!

That's why a Realtor wants you to be preapproved -- your offer is more likely to be accepted, and you won't have to go through the heartache of losing a home you've fallen in love with, or have spent hours and hours searching for.

One more advantage: If you've been preapproved, that means you'll be able to close twice as fast as any other buyer ... a definite plus in a multiple offer situation. Everything on your loan has already been done, except the appraisal. To a seller who is ready to move into their new home, you're offering a very quick closing, and that becomes a very attractive negotiating tool for you.

Call a lender NOW! You're prequalification or preapproval will be good for months, and you'll be able to make an offer on the dream house the instant you find it, and not be caught with your knickers down.