Once you've decided you want to buy a house, or even are still thinking about it, one of the best first steps is to talk to a mortgage lender. As for a Pre-Approval letter and a Good Faith Estimate.
The Pre-Approval letter means that your lender has run your credit and tells you how much you can afford. You will need this letter when you make an offer on a property to prove that you can afford the home.
The Good Faith Estimate (GFE) tells you how much you will need to bring to closing as well as how much your monthly payment will be. It is very helpful when you are planning your monthly budget, as well as looking forward to closing. The GFE should be pretty accurate but it is always good to have some extra money saved up for the closing.
Once you have your Pre-Approval, you need to be careful with your credit. Don't make any big purchases (new car, boat etc.) and don't open up any new credit cards. Also, be sure to keep up with payments on current cards. Your lender will check your credit and employment right before closing. If it has made a change for the worse, you might not be able to get the loan, or the loan might become more expensive.
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