3. Pre-Qualifying for a Loan

A: The best way to buy a house is to get pre-qualified, Ms. Anderson.

B: Why is that, Mr. Williams?

A: By pre-qualifying, you know beforehand which house you can buy.

B: I thought I would look at houses first.

A: That's okay too, but you may be wasting your time.

B: How so, Mr. Williams?

A: You may find a house you really like, but can't afford it.

B: Well, that's when I'll negotiate with the seller.

A: Yes, that's true, but by pre-qualifying, you'll save time, and effort.

B: How is that?

A: You will be able to select a home you know you can afford.

B: Okay. Then we'll try it your way.