Why Pre-Qualifying for a Loan is Important

Why Pre-Qualifying for a Loan is Important

In order for the loan process to run smoothly, one of the smartest things to do is get pre-qualified for a mortgage. A pre-qualification is an estimate of how much you can borrow from a lender which allows you to explore loan options specific to your financial situation. Pre-qualifying for a loan before you go home shopping helps you set a budget and strengthen your negotiating position when making an offer. Having a pre-qualification is also a good sign to the seller that you are serious and ready to buy. This is particularly important these days since it’s a seller market and homes are going quickly. Taking this step to be prepared can get you ahead of the game.

How to Pre-Qualify

Pre-qualification is a simple process that can be done at zero cost and completed online. Contact your Loan Officer to find out which documents you should prepare to complete the pre-qualification form. Once you pre-qualify successfully, you can request a letter stating how much you may be able to borrow based on the information you provided. You can share this with your real estate agent or simply tell the agent a price range based on the outcome of your pre-qualification.

Pre-qualification vs. Conditional Approval

Conditional approval requires more information and is a much more serious level of approval. Conditional approval means you will have a commitment to a specific loan program at a specific loan amount. It will also provide more information about your interest rate and monthly mortgage payment.

Before you start your journey as a home buyer, contact one of our Loan Officers to get pre-qualified!

 

Related Posts

What Are Construction and Renovation Loans?
What Are Construction and Renovation Loans?

When most people think about mortgage loans, they think of the standard, long-term financial commitment to purchase a home. But did you know there are mortgages available specifically for building or renovating a home, too? Keep reading to learn exactly how you can benefit from a construction or renovation loan. Construction Loans Construction loans are […]

September 08, 2021
Full Post
Using a Mortgage Calculator to Understand Your Home Loan Options
Using a Mortgage Calculator to Understand Your Home Loan Options

When considering buying a home or refinancing your current mortgage, it can be hard to know where to start and how to tell what the right decision is. While talking to a mortgage lender is always going to be your best bet for truly figuring out how much your home loan may be or if […]

September 01, 2021
Full Post
5 Common Home Buying Mistakes
5 Common Home Buying Mistakes

Whether you’re a first-time home buyer or seasoned house hunter, there are some commonly made mistakes you should know to avoid. Not Determining How Much House You Can Afford You should know how much your budget is before you start looking for houses. This will help you avoid wasting time looking at homes outside your […]

August 11, 2021
Full Post

Connect With Us