Being pre-qualified means a lender has decided you will likely be approved for a loan up to a certain amount, based on your current financial situation.
To get pre-qualified, you simply tell a lender your level of income, assets, and debt. The lender will then take that unverified information and determine how much you will likely be approved for. There are no guarantees you will actually be approved for the same amount.
Benefits of being Pre-Qualified:
- No effect on credit score
- Helps you estimate what you can afford
- Good for first-time home buyers
While pre-qualification is often the first step of the mortgage process, some sellers won’t take you seriously until you’ve been pre-approved.
Questions? Contact me today!
If you’re thinking about buying a home, the first thing you should do is focus on exactly what you’re looking for by establishing your priorities in the following areas.
Location: determine the neighborhood by prioritizing the importance of how close you need schools, shops, or transportation to be related to your home.
Personal tastes: consider how large a home you need and also what style of architecture you prefer. Think about how many bedrooms, bathrooms, and other features that are important to you.
Budget: how much home can you afford? Find out as soon as possible! Mortgage specialists can assist you with this; ask them for a pre-approved or pre-qualified letter, which will come in handy when you are ready to make an offer.
Want to talk about these steps? Contact me today!