Mortgage prequalification isn’t the last step in getting ready to buy a new home, but it can be an important one. It gives you a solid idea of how much money your bank is willing to loan you.
Here are three tips for preparing properly for mortgage prequalification.
1. Get your credit report: Ordering a full credit report is very useful in assessing your finances, especially for avoiding any unpleasant surprises. Similarly, it’s a good idea to find out what your exact credit score is. While it’s less important than getting your credit report, your credit score can also help to determine whether the bank ultimately approves or denies your loan request.
2. Be scrupulously honest: Sometimes people like to exaggerate their income or minimize unpleasant financial details to impress their friends. Mortgage prequalification is not one of those times. The bank will want to see every financial detail you can provide, and if anything doesn’t check out, you can kiss your loan goodbye.
3. Keep going: While getting a mortgage prequalification letter is important, it doesn’t mean that the bank has approved you for the loan amount you want. Mortgage approval is a more involved process, though going through prequalification will help.
Consult the mortgage prequalification experts at Midland Mortgage Corp. Our staff will work with you to make the process a breeze.