Typically this comes down to how much of a loan you can obtain. Are you a first home buyer, or are you upgrading your current home, or will you be just changing locations?
Getting pre-approved for a mortgage is the first step of the home buying process. The pre-qualification process is one in which a mortgage company interviews the home buyer and asks questions about the individuals’ finances, including debts. Ask for a pre-approval letter from a lender to get the ball rolling in the right direction.
Here’s why –
First, you need to know how much you can borrow. Knowing how much you can afford narrows down online home searching to suitable properties. Plus it’s a help to the real estate agent to learn more about what your needs are. They can point you in the right direction and help you find a selection of homes which may suit.
Second, the loan estimate from your lender will show how much money is required for the deposit and any sale costs. You may need more time to save up money or clear any other debts.
Finally, being pre-approved for a mortgage demonstrates that you are a serious buyer to both your real estate agent and the person selling their home.
Good luck house hunting!