For many potential homebuyers, the mortgage pre-approval process can be a daunting and confusing experience. However, obtaining a mortgage pre-approval is an essential step in the home buying process, as it demonstrates your financial readiness and helps you stand out as a serious buyer in a competitive market.

In this article, we will outline the exact steps for getting pre-approved for a new mortgage loan, so you can confidently embark on your home buying journey.

Step 1: Research potential lenders. There are various mortgage lenders to choose from, including banks, credit unions, and non-bank lenders. Take the time to research and compare interest rates, fees, and customer reviews to find a lender that best suits your needs. Referrals are always great, and the real estate professionals at GayRealEstate.com can refer you to LGBTQ mortgage lenders they trust and have a relationship with.

Step 2: Review your credit report and score. Before starting the preapproval process, it’s essential to review your credit report and score to ensure there are no errors or discrepancies. Your credit score plays a significant role in determining your eligibility for a mortgage and the interest rate you’ll receive. If necessary, take steps to improve your credit by paying down debts, disputing errors, and making timely payments.

Step 3: Gather necessary financial documents. Lenders will require a variety of financial documents to assess your creditworthiness and ability to repay the loan. Some of the essential documents you’ll need include:

Recent pay stubs

W-2 forms or 1099s from the past two years

Federal tax returns from the past two years

Bank statements from the past few months

Asset statements (e.g., retirement accounts, investments)

Proof of any additional income sources

Step 4: Determine your budget.  Before seeking pre-approval, it’s crucial to determine how much you can afford. Your GayRealEstate.com Realtor will help you to crunch the numbers. Together, you’ll consider your monthly expenses, debt-to-income ratio, and desired down payment to establish a budget for your new home. Be realistic and remember to factor in additional costs such as property taxes, homeowners’ insurance, and maintenance expenses.

Step 5: Submit your mortgage pre-approval application. Once you have chosen a lender, complete their mortgage pre-approval application. This will typically involve providing your financial documents, Social Security number, and permission for the lender to perform a credit check. Be prepared to answer questions about your income, employment, and financial history.

Step 6: Await the lender’s decision. After submitting your application, the lender will review your financial information and credit history to determine your eligibility for a mortgage. This process is pretty quick and often happens the same day. If approved, the lender will issue a pre-approval letter, which outlines the maximum loan amount, loan type, and interest rate you qualify for.

Step 7: Keep your pre-approval up-to-date. A mortgage pre-approval is typically valid for 60-90 days. If you don’t find a home within that time frame, you may need to update your pre-approval with your lender. Be sure to maintain your financial stability during the home search process, as any significant changes in your credit, income, or debt could affect your pre-approval status. (Don’t make any new large purchases like furniture, cars, boats, etc.)

By following these steps and obtaining a mortgage pre-approval, you’ll be well-prepared to navigate the competitive real estate market and confidently make an offer on your dream home.

(Jeff Hammerberg is a distinguished entrepreneur and broker, and the founder of GayRealEstate.com. For more than 25 years, he has been a prolific writer, coach, and author who has been instrumental in advancing the cause of fair, honest, and equitable representation for all members of the LGBTQ community in real estate matters. GayRealEstate.com, which he established, is the largest and longest-running gay real estate agent referral service in the nation, boasting more than 3,500 LGBTQ Realtors who operate in cities across the United States. His commitment to promoting inclusivity and accessibility in real estate has earned him a reputation as a passionate advocate for the LGBTQ community.)

Jeff Hammerberg is founding CEO of Hammerberg & Associates, Inc. Reach him at 303-378-5526 or [email protected].

Buying art for your new home can be both fun and an investment for the future. You can scour local galleries, visit antique stores, or buy paintings and posters online. Sometimes, you’ll even find local artisans displaying their work on the walls of real estate offices.

When it comes to a budget for art, the sky’s the limit. From original oil or acrylic paintings to clay or marble sculpture, to lighting of Chihuly glass, there is much to choose from. Even street art and painted murals can bring joy to accent walls.

Personally, I have a fondness for contemporary lithographs in primary colors and Blenko glass, but no matter what your taste, you may find art you love right beneath your feet in carpets and rugs that enhance your décor. Before you choose a rug to anchor your furnishings, determine what it’s made of and how it will work in your space.

Near the top of your budget, you’ll find pure wool rugs. They stand up well to high-traffic areas like living rooms and feel cozy beneath your feet. Good at repelling water and dirt, they can be hand-knotted or loomed and may have fringed edges.

Natural fiber rugs made of jute, seagrass, and sisal work well on their own or as an underlayment for other rugs. While inexpensive, you may find that they shed fibers, so using a rug pad under them will keep those fibers from scratching your floor.

An animal hide rug often serves as a statement piece, with each being as unique as the animal from which it came. Thankfully, you can now obtain the same look with synthetic hides with natural coloring or even dyed in bright hues.

Cotton rugs, braided or hooked, provide a more casual look for less. Many are machine washable, but they fade easily, especially if used in areas of direct sunlight or high traffic. They are also slippery when used on hard floors, so be sure to place a rug pad beneath them.

Most wall-to-wall carpet and bound area rugs today are made of synthetic fibers such as polyester and nylon. Since these machine-woven beauties often mimic real wool and there are plenty to choose from, they are generally the most affordable.

Silk rugs are best in low traffic areas where there is little chance of pet accidents or spills. You may also see them hung on walls in lieu of paintings. These rugs will require professional cleaning and are among the most expensive offerings. In addition to the Persian and Oriental styles, you can now find more modern designs made of silk.

Another thing to consider is whether you want an eco-friendly or non-toxic rug. Determining which is which can sometimes be confusing. While eco-friendly refers to a product that is healthy for the environment, a non-toxic rug made without potentially harmful chemicals focuses on the health of people.

Always read the label of a rug that you are considering purchasing. Rugs made of olefin, polyester and nylon are created through chemical processes. Flame retardant and water repellant coatings can be toxic. Natural materials may have been sprayed with pesticides. Even dyes and rubber backings may contribute to an unhealthy home.

Several rug manufacturers advertise their products as non-toxic, including FLOR, Safavieh, Lorena Canals, and Hook & Loom. If you can’t find a non-toxic rug you like, you can minimize the effect of chemical treatments and odors by allowing your rug to off-gas outside or by leaving a light coating of baking soda on it overnight before vacuuming.

Next, think about the size and shape of your new rug. Will there be at least 3 inches of rug behind the front legs of your furniture as suggested by Martha Stewart? Do you have an apartment or condominium that requires a certain percentage of hard flooring be covered? Do you want to soften the edges of a room by using a round or oval rug or will you need a runner for hall or stairs?

The style, pattern, and texture of your rug will determine whether it simply muffles noise or becomes a favorite piece of art. Try a modern shag or an antique dhurrie. Layer several silk rugs on top of each other. Select a bold chevron, an Ikat pattern, or a mid-century Mondrian vibe.

Embrace color with an abstract Bohemian or choose a floral, stripe, or sculptured, tone-on-tone rug. You can also let your creative juices flow by designing a custom piece.
Whatever you choose, let the art under your feet reflect your personality and style, and enjoy it for years to come.

Valerie M. Blake is a licensed associate broker in D.C., Maryland, and Virginia with RLAH Real Estate / @properties. Call or text her at 202-246-8602, email her via DCHomeQuest.com, or follow her on Facebook at TheRealst8ofAffairs.

As we enter the spring market, it might be a good time to review what makes someone’s offer to buy another’s home competitive or not.

At various times in the housing market, we have seen where the need for a buyer to write a very competitive offer has been crucial to “win” the offer and to purchase the desired home. If a seller receives six offers for their home, they will usually pick one that makes it easier for themselves in the transaction. At other times, and in other scenarios, a buyer can ask for more agreeable terms from their perspective.

Usually there are about three categories that buyers and sellers focus on when they are crafting and reviewing an offer. These categories are PRICE, CONTINGENCIES, and TIMELINE. There are various ways to address each of these factors:

PRICE
Above the asking price
At the full asking price
Below the asking price

CONTINGENCIES
NO financing contingency vs. Conventional or FHA financing contingency
NO inspection contingency vs. home inspection and seller credits or repairs
NO appraisal contingency vs a home appraisal contingency

TIMELINE
2-3 week closing period
4 week or 30-day closing period
45-60-day closing period

There are ways to structure your offer where you may have a combination of the three factors above. I have written offers where the buyer waives the home inspection contingency, but keeps the financing contingency, and agrees to close in 21 days or 30 days. Some offers have been written with the most competitive of all three terms, and some offers for less competitive terms in all three categories.

How does one decide how to structure their offer? Well, that’s where the agents come into play, and find out from each other what the seller and buyer are both aiming to gain out of the situation. Does the seller want the full price, but doesn’t mind if the closing happens in 45-60 days? Does the seller want a quick close but doesn’t necessarily need the full asking price? Maybe the seller is under contract to buy another home and needs to access their equity in a few weeks. Maybe the buyer wants some repairs done but will just take a credit from the seller or a reduction in sales price.

It’s usually a good rule of thumb to work toward a “win-win” situation for the buyer and the seller, to keep things moving smoothly. Have more questions? Shoot me an email and let’s talk.

Joseph Hudson is a Realtor with the Rutstein Group of Compass. Reach him at 703-587-0597 or [email protected].