Getting Pre-Qualified for a Mortgage

Before starting your home search, it’s important to know exactly how much you can spend on your new home. This will help you narrow down which house you want and give you peace of mind when it comes to making an offer. One of the best factors in figuring out what you can purchase is a pre-qualification from a qualified mortgage consultant.

The pre-qualification process is a simple one. Your mortgage consultant will request a limited amount of information such as social security number, current monthly debt and general credit worthiness. Using this information, the mortgage consultant can construct a rough estimate of how much you can afford.

When a buyer receives their pre-qualification, they are not “locked in” to any kind of contract and the service is offered free of charge at most institutions.

There are several advantages to getting pre-qualified in addition to knowing how much you can afford to spend on your new home. Pre-qualified buyers have better negotiation power, since a seller knows that they are serious about purchasing a home. In today’s market, many sellers won’t accept an offer unless a homebuyer has been pre-qualified.

Plus, once you have made an offer and it has been accepted, the process of securing a loan will go more quickly since you are pre-qualified.