Your agent or broker can help you understand the process and local market first. You should then speak with appropriate lenders before setting a property search or touring homes.

PAYING CASH? Go directly to the Cash Buyer Track. You may skip the loan and preapproval material, but you should still establish a financial target, prepare proof of funds, calculate the complete ownership cost and preserve adequate reserves.

Your agent or broker should have several reliable local lender resources and some understanding of which lenders may be better suited for circumstances such as:

• First-time-buyer assistance
• FHA, VA, USDA or conventional financing
• Self-employment or variable income
• Condominiums or manufactured homes
• Jumbo financing
• Credit or down-payment challenges

You are still free to compare lenders, rates, fees, service and loan programs.

If the agent or broker you choose cannot provide any reliable local lender suggestions, consider whether a different professional may be more appropriate. The absence of lender resources can indicate limited experience with buyers, financing or the local market.

Your real estate agent or broker and lender should communicate before an offer is submitted—not wait until after the contract is signed.

The agent understands the property, local market and proposed contract terms. The lender understands the buyer’s financing, loan program and approval requirements. Together they should evaluate:

• The proposed price and loan amount
• Estimated property taxes
• Homeowners and possible flood-insurance costs
• HOA, condominium and CDD fees
• EMD and closing-fund availability
• The requested closing date
• Permitted seller credits or concessions
• Appraisal concerns
• Property conditions that may affect the loan program
• The buyer’s estimated complete payment

A property may fit the price range but become unaffordable after taxes, insurance, association fees and CDD assessments are included.

The agent and lender should confirm that the proposed offer works financially before the buyer signs it. Their coordination cannot guarantee approval, but it can prevent avoidable problems and improve the buyer’s likelihood of closing successfully.

A prequalification is generally an early estimate based largely on information you provide. A preapproval normally involves a more detailed review of income, assets, credit and debts. Neither is a guarantee that the final loan will be approved.

Your lender may request:

• Identification
• Pay statements and employment history
• Tax returns or business records
• Bank and investment statements
• Information about debts and recurring obligations
• Documentation showing the source of down-payment and closing funds

Respond promptly and accurately. Do not hide a debt, source of funds or financial obligation because it seems unimportant.

A lender may approve a payment that is technically possible but uncomfortable for your household. Decide how much you want to spend—not only how much you are permitted to borrow.

Estimate the complete monthly and ownership cost, including:

• Principal and interest
• Property taxes
• Homeowners and flood insurance
• Mortgage insurance, when applicable
• HOA or condominium fees
• CDD assessments
• Utilities, maintenance and repairs
• Savings needed after closing

What to remember: Your maximum approval amount is a ceiling, not a spending goal.

Paying cash removes the mortgage-approval process, but it does not remove the need for planning. Establish a comfortable purchase limit and be prepared to provide appropriate proof of funds with an offer.

Preserve enough money for inspections, closing expenses, insurance, immediate repairs and reserves after closing. A cash purchase does not eliminate the need to investigate the property, title, insurability, flood exposure, association obligations or future ownership costs.

Until closing, protect your loan approval. Before making any unusual financial move, consult your lender.

• Do not apply for or open new credit.
• Do not finance a vehicle, furniture or another major purchase.
• Do not change jobs or compensation without speaking with your lender.
• Do not co-sign a loan for someone else.
• Do not transfer large sums without documenting the source and destination.
• Do not make unexplained cash deposits.
• Do not spend money reserved for the deposit or closing.
• Do not pay off debt unless your lender directs you to do so.

Lenders commonly verify credit, employment, debts and available funds again before closing.