Here are the three sequences I see buyers follow most frequently....

As Late As Possible

• Guess at what you can buy using online mortgage calculators.
• Start viewing houses.
• Make an offer.
• Ratify a contract to purchase a home.
• Start talking to several lenders.
• Select a lender.
• Become pre-qualified.
• Make loan application.
  
• Provide income and tax documents (etc.) to lender.
• Obtain loan approval.
  

Incredibly Proactive

• Start talking to several lenders.
• Select a lender.
• Become pre-qualified.
• Make loan application.
  
• Provide income and tax documents (etc.) to lender.
• Obtain loan pre-approval.
• Start viewing houses.
• Make an offer.
• Ratify a contract to purchase a home.

A Reasonable Middle Ground

• Start talking to several lenders.
• Select a lender.
• Become pre-qualified.
• Start viewing houses.
• Make an offer.
• Ratify a contract to purchase a home.
• Make loan application.
• Provide income and tax documents (etc.) to lender.
• Obtain loan approval.

I try to encourage all of my clients to at least be in the "reasonable middle ground" sequence as outlined above.  This gives them a firm idea of what they can afford and how a home price will compare to a loan payment.  This also allows them to make a stronger offer, already having a pre-qualification letter in hand.

I strongly discourage my clients from following the "as late as possible" sequence as outlined above.  This doesn't help them make the best decisions about which houses to pursue, how far to negotiate, etc.  This also doesn't allow us to make as strong of an offer on a house.

Occasionally, one of my clients will fall into the "incredible proactive" sequence as outlined above, and wow, this makes the financing process a joy to work through!  These buyers have already done so much of their work with the lender before even thinking about which house to buy -- which then allows them to focus on buying, negotiating, inspecting, etc., rather than be bogged down in the process of securing their mortgage.

Let me know if you have questions about how I have described these sequences -- and let me know if you would like a few recommendations for lenders in the Harrisonburg area.
 

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Have any questions? Contact Scott Rogers at 540-578-0102 or scott@funkhousergroup.com