Now that you have hired a Realtor and spoken with a lender you have what you need to start the buying process. Your lender will have collected 2 years of tax returns, bank statements and other items from you in order to pre-approve you for a loan. A pre-approval is what you want prior to your home search. Many lenders can give you a pre-qualification letter over the phone based on what you tell them. However, when you are submitting an offer on a home a pre-approval will beat a pre-qualification letter all the time. It gives the seller and seller’s agent a sense of security that you will be able to fulfill the purchase contract. Your pre-approval letter will show how much of a loan you qualify for. You do not have to spend the full amount. In addition, when you find the home of your dreams you will want to have your pre-approval letter tailored just for that property, never show all your cards. Stay tuned for the next is step #3 with finding your home