Getting approved for a mortgage can be draining and difficult for those going through it. There’s a lot of misinformation out there about the best way to approach this process, and it’s important to stay focused on your goal. Prequalification can be the best way to get an accurate estimate of what your borrowing future holds.
1. Financial Profile. Having proof that your income can be tracked and confirmed for the span of several years is essential. No dramatic financial changes will go toward establishing a history of stable earnings. Your credit history is also an important part of establishing accountability. The third pivotal key is your current standing with debt. These three factors will be evaluated to create an idea of your financial profile.
2. Borrowing Power. The point of getting pre-qualified is to determine your own borrowing potential. It’s a process that helps prospective homeowners become more familiar with the kind of mortgage they will most likely be offered.
3. Lending Standards. A mortgage pre-qualification assesses how well you fit into an existing template. If you don’t hit the mark with one lender, don’t get discouraged. Shopping around for your mortgage is probably a smart move no matter what the results of your pre-qualification are.
Don’t hesitate to get some help along the way. Experts can provide insight on avoiding basic mistakes and can help smooth out the prequalification process so that you’ll be in the best position possible when the time comes to hand everything over for a decision.
For more information about mortgage prequalification, contact us.