In a seller's market, one of the best things you can do prior to shopping for a new home is arrange for financing. Lenders will give you a pre-approval letter based on your current financial status and your down payment. It shows exactly how much mortgage a lender is willing to offer you.
There are two advantages to having a pre-approval letter. First, it lets you know exactly how much you can afford and second, it demonstrates to both realtors and sellers that you are serious about purchasing a home.
So before heading out in search of the perfect home, be sure to contact a mortgage lender and get a pre-approval letter. It can be the edge you need in a competitive housing market.