Get Pre-qualified For Mortgage

The purchase of a home is one of the most signification investments you will make in your lifetime. To ensure this investment is right for you, it is important to understand each step of the mortgage process. You must do your research, educate yourself and gather all the facts you need to make the right mortgage decision. The first step in your home search should be mortgage pre-qualification.Here is all you need to know about mortgage pre-qualification and why you need it.

What is mortgage pre-qualification?

Mortgage pre-qualification is an evaluation by your chosen lender that determines if you qualify for a home loan. You also get to know how much the lender would be willing to lend you for buying a home. While mortgage pre-qualification is the first step towards getting a mortgage, it does not guarantee a home loan. Ideally, you should deposit your mortgage pre-qualification letter along with your offer letter so that your seller knows that you are serious about the purchase.

How to get pre-qualified for a mortgage?

The first step to getting pre-qualified for mortgage is to find a lender to work with. Getting mortgage pre-qualification involves providing your lender or bank with all your relevant financial details, including your income, assets and debt. The lender will review everything and run a credit report. If you meet the lender’s guidelines for issuing a home loan, they will issue you a pre-qualification letter, which provides an estimate of how much you can borrow for buying a home. Mortgage pre-qualification can happen online or over the phone, and it is usually free of cost.

Why should you go for mortgage pre-qualification?

There are various reasons why you should get pre-qualified for a mortgage. The primary benefit of getting a pre-qualification letter is that it can help your offer stand out, especially when the market is very competitive and the property you are eyeing is highly sought-after. It helps shows the sellers that you are a credible buyer and that you are qualified to secure the mortgage required to finance the purchase.

Sometimes, the sellers also seek a pre-qualification letter from all the potential buyers. Moreover, when you get per-qualified, you get a fair idea of how much you can afford to spend on buying a home. This will help narrow your search and avoid hassles.

When is the best time to get pre-qualified for mortgage?

The moment you decide that you are ready to buy a home, you should get pre-qualified. So, the best time to get pre-qualified is right at the beginning when you are trying to figure out your budget.

Is mortgage pre-qualification

Mortgage pre-qualification is the first step, pre-approval is the next. A pre-qualification is an indication of your ability to borrow, but a mortgage pre-approval is the definitive word.

Need help with your home search? Get in touch with our experts right now. We will help you with every step right from mortgage pre-qualification to finally, purchasing your dream home.

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