What should you advise your buyer client to get pre-approved for before looking at homes?

What should you advise your buyer client to get pre-approved for before looking at homes?

• A. A Loan
• B. A Credit Card
• C. A Lease
• D. A Mortgage

Answer: (A)

Knowing your buying power starts with getting pre-approved for a loan, typically a mortgage loan, before you start looking at homes. This means a lender reviews your income, assets, and credit to determine how much they’d be willing to lend you and under what terms. That pre-approval gives you a concrete price range and a written approval you can show sellers, making your offers stronger and speeding up the process if you find a home you want. A credit card isn’t used to finance a home purchase, and a lease is renting, not buying. While the mortgage is the loan used to buy the home, the standard step you’re being tested on is obtaining pre-approval for a loan (i.e., a mortgage loan) to establish your actual borrowing power before shopping.

Knowing your buying power starts with getting pre-approved for a loan, typically a mortgage loan, before you start looking at homes. This means a lender reviews your income, assets, and credit to determine how much they’d be willing to lend you and under what terms. That pre-approval gives you a concrete price range and a written approval you can show sellers, making your offers stronger and speeding up the process if you find a home you want.

A credit card isn’t used to finance a home purchase, and a lease is renting, not buying. While the mortgage is the loan used to buy the home, the standard step you’re being tested on is obtaining pre-approval for a loan (i.e., a mortgage loan) to establish your actual borrowing power before shopping.