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What, When, Why and How? A Basic Guide to Mortgage Prequalification

What, When, Why and How? A Basic Guide to Mortgage Prequalification

Do you know enough about mortgage prequalification to get the best results?

Couple getting prequalified for mortgage

Mortgage prequalification can be an important first step for prospective homeowners searching for a loan. If you’re still skeptical about the benefits of this process, take some time to review the basics.

What is a Mortgage Prequalification?

Many people confuse mortgage prequalification with approval for a mortgage. This is unfortunate because getting prequalified for a loan is definitely not the same as being approved for one! Prequalification is the process through which prospective borrowers learn what kind of loan they might be eligible for based on financial history, current income, outstanding debt, and other factors. It is a great step to take as you are preparing to apply for a mortgage.

When Should I Consider Prequalification?

The virtue of this process is that it gives you insight about the size and scope of loan you will most likely qualify for. So the sooner the better. Prequalification will help you narrow the range of homes you are looking at and give you a realistic idea of what you can afford.

Why Should I Bother With Prequalification?

Especially with first-time buyers, applying for a mortgage loan can be daunting. Prequalification will help put things in focus as far as price range and mortgage affordability go. It will also illuminate any factors that might threaten loan approval, giving you the chance to improve your standing before you actually start the application process.

How Do I Get Started?

Prequalification is relatively simple. You just have to talk with a mortgage professional and submit the proper documentation for review. You’ll need the essentials – current income, credit score history, and outstanding debt – so take the time to get organized before you make an appointment.

For more information about mortgage prequalification, call 803-765-1680 or toll-free at 800-854-9484.

Posted Oct 30, 2014 by Midland Mortgage Corporation