Many first time home buyers shop for a home or condo and they get excited about a property that they would like to purchase but discover later that they may not be qualified. A first time home buyer can avoid being disappointed by getting pre-approved not pre-qualified. With pre-qualification, a lender tells you "how much you can qualify for" based upon information you provide but they don't commit to making you a loan.

On the other hand, a pre-approval involves filling out an application, submitting documentation, and obtaining a formal pre-approval letter. The letter will give you greater negotiating power and let sellers know that you are a no problem buyer.

How to buy a home with limited money down! There are still first time home buyer programs offer low down payment options with approved credit. Don't put off buying due to a lack of funds since there are many flexible loan programs to meet your financial situation.

You can still buy a home with damaged credit! You should not pass up the opportunity to own because you feel that your credit is not good enough to qualify for a loan. You should consult a mortgage professional before closing the door on home ownership. He will pre-qualify you and run a credit report to see what credit issues you have and the reasons for the credit delinquencies should be explained to him.

If you do not qualify for a loan now, you should work on improving your credit over the next 6 months to 1 year and then decide to buy.