Don’t put the horse before the cart. It’s advice that never rings less true, especially when dealing with financial decisions. Getting pre-qualified for a loan is a great first step in the process of securing a mortgage. However, it’s important to understand what this term means and know the difference when it comes to pre-approval. Learn about the home loan process and evaluate your own credit identity before submitting information for processing.
• Pre-qualification does not guarantee that any bank will approve you for a loan. This is the most important thing to understand about pre-qualification! It is simply a process by which the bank or lender provides an analysis of your finances and gives an estimated loan figure based on assets, income, and debt. Do not make the mistake of moving forward without getting officially approved for your loan.
• Pre-qualification is often free and easy to do. Most banks or lenders will provide over the phone evaluation at no cost to the borrower. This is a great chance to get feedback on your mortgage eligibility and your financial identity. Learn what you can do to improve your chances of getting a mortgage by taking this assessment into consideration. Timing is everything. If you are not in an ideal position to secure an optimal loan, consider focusing on improving your scored and establishing better credit so you can get a loan in the future.
Click here for more information on how to take advantage of the pre-qualification process!