When you make the decision to purchase a new home your first step should be to find a lending institute and prequalify for a mortgage. The mortgage prequalification process helps determine whether or not you can get a mortgage.
Once you’re prequalified you will know how much you will be able to borrow and what your mortgage payment will be. This removes any uncertainty as to whether or not you can afford a home.
Additionally, being prequalified will let the seller and real estate agent know that you are serious about purchasing a home. Being preapproved also gives you more leverage during negotiations about the price with the seller.
Your credit report will be one of the largest considerations in applying for a mortgage. It doesn’t have to be perfect to get approval, but those with lower credit scores will get a higher interest rate. There are many factors involved with prequalifying for a mortgage but you should be prepared to explain less than perfect credit. Before applying for preapproval, you should get a copy of your credit report and prepare explanations for any delinquent payments or collections.
For more information about mortgage prequalification, call Midland Mortgage at 803.765.1680 or toll–free at 800.854.9484.