Post Mortgage Pre-Approval

After you decide that a particular property meets your requirements, you will make an offer that your real estate agent will then present to the seller. If this offer is acceptable, both you and the seller will sign a purchase contract. This is your first step in planning the mortgage pre-approval process. 

Most offers will require an earnest money deposit, which may range from 1% to 5% of the purchase price. These funds will be applied at closing in the form of a credit towards the purchase price.  

After your offer is accepted you will formally apply for financing. In most instances, the lender will require a real estate appraisal to determine the value of the property. Please note that if the property appraises for less than the purchase price, the lender will use the lower value and your loan amount may adjust depending on the appraised value. If the appraisal comes in higher, the purchase price, not the appraised value, will be used to determine your loan amount.  

Your real estate agent may also suggest that you hire a professional home inspector. This is often a good idea to avoid potential pitfalls later with construction and repairs. Usually, the inspector will give you a report that may contain issues that he/she notices while inspecting the property.