GETTING PRE-QUALIFIED
Once you have an idea of the type and size home you want and
the area you'd like to look in, you should be prequalified by a
lender. By doing this before looking for a home you'll save
yourself time, energy and frustration because pre-qualification
can:
Determine How Much Home You Can Afford
Pre-qualification helps you avoid buying more home than you
can afford or being disappointed if you don't qualify for as
much as you had hoped.
Show What Your Total Investment Will Be
You'll know approximately how much money you'll need for
down payment and closing costs.
Let You Know What The Monthly Payment Will Be
You'll have a close estimate of what your monthly principal,
interest, taxes and insurance(PIT) will be.
Identify the Loan Programs You Can Qualify For
With the wide variety of loan programs available, it is important to
know which types you qualify for and which will best suit your needs.
Strengthen Your Offer
Sellers are more inclined to accept realistic offers when they know that you have taken the time to be interviewed by a lender and
can probably qualify for the loan.
At this point, your lender can also help you determine alternatives and strategies that could help you buy the home of your dreams.
Some examples include:
- Special First Time Homebuyer Program
- Debt Consolidation Counseling
In order to be pre-qualified, the lender will need to know the following:
- Your Employment History and Income.
- Your Monthly Debts and Obligations.
- The Amount and Source of Cash Available for Down Payment and Closing Costs.
When you are pre-qualified by a Mortgage Company, you'll receive a FREE Pre-Qualification Certificate to give to your Realtor®. The
seller may be more likely to accept your offer because he/she may know you are qualified to buy their home.