Probably the most important step in buying a home is getting your loan. When you apply for a loan and receive approval before starting the home search, you become a very powerful buyer.

A standard letter from your leader for loan approval can cut days or even weeks off the closing, because the lender has already conducted a credit analysis and approved you for the mortgage needed. This strengthens your offer and negotiating position.

Loan approval will also determine your price range and narrow your search parameters. Based on your down payment and approved mortgage amount, you will know how much you can afford before you even start looking for a house. With so many homes from which to choose, this step is a must.