You Got Preapproved! Now What?

Getting preapproved for a mortgage is a major milestone in your journey toward homeownership, but it’s far from the final step. A preapproval letter means a lender has reviewed your credit and finances and is conditionally willing to lend you a certain amount. With this letter in hand, you’re officially in the game, and in a much better position to shop with confidence, negotiate effectively, and make strong offers on the homes you love. But what exactly should you do next? Here’s a step-by-step guide to help you navigate the next phase of the homebuying process with clarity and confidence.

Set Your Homebuying Budget

While your preapproval outlines the maximum amount you might be able to borrow, it’s essential to decide how much you are comfortable spending. Consider your monthly income, expenses, and savings goals. Make room in your budget not just for the mortgage, but also for property taxes, homeowner’s insurance, utilities, routine maintenance, and unexpected repairs. It’s also a good time to factor in future financial goals, like starting a family, saving for college, or planning for retirement. Setting a conservative, realistic budget will help you make smart financial decisions and avoid buyer’s remorse later on. Curious how much home you can afford? Try our free online calculator to help establish you budget.

Find a Real Estate Agent

A knowledgeable and trustworthy real estate agent is your go-to guide through the complexities of the housing market. They will help you identify homes that match your criteria, schedule showings, evaluate neighborhood trends, and develop a winning offer strategy. A good agent will also help you avoid common pitfalls and navigate competitive bidding situations. Ask friends and family for referrals, browse online reviews, and interview a few candidates to ensure a strong working relationship. Your agent should be responsive, knowledgeable, and fully committed to helping you find the right home.

Start House Hunting

This is the exciting part, but it can also be overwhelming. With your preapproval and agent ready to go, start touring homes in your desired price range and neighborhoods. Pay attention to what features and layouts appeal to you, and be open to refining your list of must-haves vs. nice-to-haves. Consider long-term value, future resale potential, and lifestyle factors like proximity to work, schools, parks, and public transportation. Take photos and notes during showings to help you compare options later. Remember, the more informed you are, the more confident you’ll feel when it’s time to make an offer.

Make an Offer

Once you find a home that checks the right boxes, work with your agent to craft a competitive offer. Your preapproval letter adds credibility and shows the seller that you’re financially prepared. Depending on the local market, you may be able to negotiate, or you may need to act fast and submit your best offer right away. Your agent will advise you on pricing, contingencies, and how to structure your offer for the best chance of acceptance. Be ready to include earnest money—a deposit that shows you’re serious about the purchase.

Schedule a Home Inspection

After your offer is accepted, schedule a home inspection as soon as possible. A licensed inspector will evaluate the home’s structure, electrical systems, HVAC, roof, plumbing, and more. The inspection can reveal issues that aren’t visible during a walkthrough, from minor repairs to major red flags. Use the report to decide whether to move forward, renegotiate the price, request repairs, or in rare cases, walk away. This step is critical for ensuring you’re making a well-informed investment.

Finalize Your Mortgage

Next, it’s time to move from preapproval to full loan approval. This involves providing updated documentation, such as pay stubs, bank statements, and tax returns. Your lender will review your financial situation again, verify your employment, and confirm that no major changes have occurred since preapproval. You’ll also have the opportunity to lock in your mortgage rate and choose from available loan options. At First Ohio Home Finance, we make this step as smooth and transparent as possible, keeping you informed and on track from start to finish.

Get an Appraisal

To protect its investment, your lender will require a professional appraisal of the property to confirm its market value. If the appraisal comes in at or above the agreed purchase price, you’re good to go. If it’s lower, you may need to renegotiate with the seller, make a larger down payment, or, in some cases, reconsider your purchase. A low appraisal doesn’t necessarily kill the deal—but it does require careful evaluation and communication.

Prepare for Closing

As the closing date approaches, your lender will provide a Closing Disclosure outlining the final loan terms, monthly payments, and closing costs. Review this document carefully and ask questions if anything looks unclear. Your title company or closing agent will schedule a time to sign the final paperwork, which includes your mortgage agreement and ownership documents. You’ll also need to bring any required funds, typically via cashier’s check or wire transfer. Once everything is signed and recorded, the keys are yours! You’re officially a homeowner.

Ready to Take the Next Step?

At First Ohio Home Finance, we believe in providing more than just financing. We’re here to be a trusted partner in your homebuying journey. Whether you’re unsure what comes next or just need help navigating the final stages of your mortgage process, our team is ready to support you. If you’ve recently been preapproved, now is the perfect time to reach out to your loan officer, ask questions, and take that next step with confidence. Your dream home is closer than you think—and we’re here to help you get there.