We just started looking sort of...

We drove around neighborhoods this weekend to see what we liked and so forth. My question is, when is the best time for us to actually go to open houses or call agents to see homes? Should we be pre-approved first and if so, what if we don't plan on really looking for another couple of months should we wait till then to start and get pre-approved then? Is pre-qualification not worth it to do anymore?

This whole house hunting process is overwhelming!

Re: We just started looking sort of...

You should get Pre qualified First - so you can see what you can actually afford. Then if you want start going to Open Houses. Ask Questions, and after visiting a few houses you will be a pro. You can check school districts on newsdays website, and you can post in this forum any questions you may have about the whole house hunting process....

What towns are you going to be looking in?

Scott

Re: We just started looking sort of...

We were told a pre-qual meant nothing and to get pre-Approved. A pre-approval is a little bit more solid.

Even if you are not really ready to purchase yet, but know you are going to be, I would def start going to open houses in areas that you are considering.

From there you will learn what types of houses you like/don't like. And like mentioned Ask a lot of questions.

We also were told to drive around the neighborhood of interest at different times of the day: morning/afternoon/night.

HTH!!! Good luck!!!

Re: We just started looking sort of...

You can do open houses any time you want. Great way to know whats out there.

We didnt have a pre approval, and we made offers on several houses

Also when we did get out pre approval we would change it based on our offers

Have fun, love open houses

Re: We just started looking sort of...

If two different people are looking at a house and they both put an offer on the house - The person with the Pre qual / Pre approval will most likely have the upper hand with the seller than the person that doesnt have the pre qual/ pre approval. I agree that a Pre Approval is stronger than just having a pre qual
Scott

Re: We just started looking sort of...

Definitely get pre-approved first.

I know you are just starting but you never know you might find a house you love right away and you want to be ready and have "all of your ducks in a row".

Even with the increased inventory right now, a lot of buyers are stretched to the limit and deals fall through. Many sellers have become conditioned to only entertain pre-qualified offers. From a previous seller's perspective, I can't tell you how many people will make offers and then they 1. no way can qualify for the loan they need or 2. are just flaky and change their mind and pull out and not for reasons due to the inspection report either.

1. Get pre-approval so you kow what you can afford.

2. Narrow down where you would like to live and what area you can afford.

3. Make a list of "must haves", "maybe" and "definitely nots" for the house you care desiring.

4. If that's difficult, take a couple of weekends, go to open houses and it will become clearer.

Good luck

ETA: We sold last summer and wouldn't even listen to an offer that wasn't pre-approved. People had to have a pre-qual letter to make an appt. to look at the house. We were FSBO and wanted to elminate the "nosey" neighbors and people who are just "curious" or looking for decorating ideas, or whatever.

Message edited 6/14/2006 9:16:50 AM.

Re: We just started looking sort of...

We have been looking at houses now and as we get closer to selling our co-op we decided to get a pre-approval. When the time comes to make an offer we want to be armed with the sale of the co-op and the pre-approval.

Also, as mentioned above, it is helpful for you in that it gives you a better understanding of what you can afford.

Good Luck!!!!

Re: We just started looking sort of...

I hear that but, they can def look without a prequal. I would have a mortgage broker in the background just in case they decided to put an offer down.

But I dont think its a absolute to start looking at houses.

Re: We just started looking sort of...

DH and I would drive around whenever we got the chance. Weekends are a good time to drive around because thats when most open houses are held. You can make appointments to see a house listed anytime you want though.

We didnt get pre-approved or pre-qualified before we saw houses. We knew how much we could afford and knew we wouldnt have a problem getting approved for a loan. None of the agents seemed to care. We only got all of that done once we found the house we wanted to buy. Pre-qual took one day and approval didnt take too long either.

Re: We just started looking sort of...

Re: We just started looking sort of...

Thanks everyone for all your suggestions. We still have to get our credit scores. We have our reports but not the scores. We have an idea of what we can afford but I want to get a sense of what a lender is willing to give us.

I didn't know that we could go to Open houses now. Thanks for the tip! :D

Re: We just started looking sort of...

We got the prequalification and when we found something we liked went ahead with the preapproval. You need a lot of papers so it will give you some time to get them together. We had the person give us a letter for lower than our approval so that we would not be'showing all our cards' when we bid. Than when we had to go higher we got a new letter.

The mortgage people will give you your credit scores. You don't have to worry about getting them.

Re: We just started looking sort of...

Thanks for the tip. Now the only thing is finding someone that does pre-qual. I have called a couple of places and everyone seems to do pre-approvals only. Anyone know of anybody that does Pre-qual besides Astoria Federal Savings?

Re: We just started looking sort of...

On the issue of prequal vs. preapproval...

I understand that when you look for loans, you should do it within a 2 week period, because the inquiries are reported to the credit agencies. My question is does anyone know if the prequals are hard inquiries or soft inquiries? Cause if you do a pre-qual and then 2 months later, do a pre-approval its likely your FICO score could drop if both are hard pulls? Does anyone have any insight?

Any banking/loan/mortgage ppl out there?

Re: We just started looking sort of...