What does it mean to get pre-qualified?
Why should you get pre-qualified?
When you looking to buy either your first home or 2nd home every Realtor or home owner will ask you the same first question, have you been pre-qualified? So what does that mean and how do you become pre-qualified.
The pre-qualify mortgage application
Basically in order to be pre-qualified you have to complete an application with a lender, mortgage broker or online site. The application process covers 4 main areas, income, assets, debts and credit worthiness. The lender will pull your credit to obtain your FICO (r) score. Then using your income figures and monthly debt payments they will figure out how big of a mortgage you can afford. This will give you an idea of what types of property and location to search.
The mortgage pre-qualification letter
Once you complete this process you are then given a pre-qualification letter from either the lender or broker. This letter is used when you submit an offer, it shows the realtor and/or seller the mortgage amount that you are able to obtain for financing. Make sure it is at least equal to the amount you are offering.
Compare lenders - get pre-qualified online
So if you have just decided to start looking at purchasing a property and need to get pre-qualified to apply for a home mortgage loan, please check out one of our trusted online lenders to get your pre-qualification letter and get one step closer to buying your dream home.
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