What Does it Mean to be Pre-Qualified?

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!