Should I get Prequalified to Buy a Home?
When searching for a home, you will eventually find yourself sitting face to face with a mortgage lender who will be evaluating your financial history. At that time, you might find yourself
struggling to gather enough information to present a positive lending history. You can avoid the discomfort of this process by going through a process to get pre-approved or pre-qualified.
A pre-qualification process relies on information you provide to a mortgage broker or lender. It can often be completed online but can also be done through an in-person interview with a lending specialist. Unlike the process of being pre-approved, which involves the requisition of paperwork from a variety of sources, a pre-qualification process relies solely on the information you choose to provide. In essence, it only gives you a potential scenario for how much you might be qualified to borrow, rather than promising that amount. The information is provided to you on the basis of your credit score, amount of debt already owed and your income.
If you want to receive a true representation of the amount you might be able to borrow, it would benefit you to spend the time and effort to attempt to be pre-approved for a loan, which involves more paperwork and a more in-depth study of your financial situation than simply pre-qualifying to buy a home.
The other reason to get pre-approved or pre-qualified is home sellers will take your offer more seriously. Knowing that a homebuyer is already approved for a mortgage or has the strong potential of qualifying for a mortgage tells the seller you are serious.
Have further questions, or interested in getting started in the pre-approval process? Visit our Financing Page. Our preferred lender can help you get started in making your dream home come true. Click Here to learn more.