The next recommended step would be to obtain a formal pre-approval from a mortgage lender. Such Pre-Approval can go far as a written commitment to specific loan terms, only contingent on an acceptable Agreement of Sale and Property Appraisal. With a Pre-Approval in-hand, you will be in an excellent negotiating position when you finally make an offer on a home. The potential seller will be more apt to accept an offer from someone who is Pre-Approved for a mortgage.
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