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The 3 Most Important Things You Need for Mortgage Prequalification

The 3 Most Important Things You Need for Mortgage Prequalification

Get in the right mentality for your mortgage prequalification. 

Being an adult changes a lot of things – mostly there’s just more paperwork, and that’s especially true in the case of getting a mortgage prequalification. There are some very important documents you’ll need before you make any moves on your mortgage prequalification efforts.

Here are some of the best tips for approaching the process.

  1. Work on Your Financial Breakdown.

    A mortgage prequalification is just an estimate of what loan you might be able to afford. This is your borrowing power, based on income, assets, and a credit check, and it’s important to have an accurate understanding of what you are capable of securing.
  2. Understand the Nature of Conditional Approval.

    The mortgage prequalification process is not the same as being approved for a mortgage. However, it is an important step toward achieving that goal. It can help you improve your negotiating position when discussing options with your broker.
  3. Keep a Level Head.

    Just because you could borrow a certain amount doesn’t necessarily mean that you should. Keep in mind that it might be wiser to toe the line in favor of caution and go with a mortgage that causes less financial stress. Mortgages are long-term commitments, but don’t let the prospect of qualifying for a big mortgage cloud your judgment.

For more information on taking your first step toward mortgage prequalification, view the application here.

Posted May 29, 2014 by Midland Mortgage Corporation