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Steps for Pre-Qualifying for a Mortgage Loan  

Steps for Pre-Qualifying for a Mortgage Loan  

When you first decide that you are ready to buy a home, it’s tempting to rush to any and all open houses. However, pre-qualifying for a mortgage loan is a smart step before you do any shopping.

Benefits of pre-qualifying for a loan

Pre-qualifying for a loan benefits you as the buyer because it narrows down your market and potentially saves you from the headache of falling in love with a house too expensive for your budget. Your pre-qualification letter also benefits you in that you will appear as a much more serious buyer to sellers and real estate agents.

Step 1: Establish contact with a mortgage specialist

In order to be pre-qualified, you must first contact a mortgage specialist either through a bank or a mortgage company. Once you have selected your mortgage lender, you provide the necessary information over the phone or through an in-person meeting. Alternatively, many lenders offer the ability to pre-qualify online.

Step 2: Provide accurate information

Pre-qualification of a mortgage loan is based on information (not documentation) that you provide. Therefore, your pre-qualified letter only states what you are likely to receive as a maximum loan amount. Therefore, you will want to provide as accurate of numbers as you can. Prepare the following information when you speak with your mortgage specialist:

  • Estimated monthly income and debts
  • Assets
  • Account information including any delinquencies
  • Amount of money available for a down payment
  • Estimated credit score
  • Employment dates

Step 3: Receive your pre-qualification letter

Once you receive your pre-qualification letter, it is time to start looking at houses within your estimated loan amount.

If you have a question about the pre-qualification process or would like to speak with a mortgage specialist, contact us today!

 
Posted Apr 26, 2017 by Midland Mortgage Corporation