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.
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.
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.
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:
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!