Getting pre-qualified for a loan before you start looking for a home is a smart move.
What is Pre-qualification?
Pre-qualification is a lender’s estimate of what you likely are able to borrow, based upon information on your income, assets and credit check. Your lender will provide you with an estimate of your loan amount and potential loan program information such are estimated principal and interest payments.
What are the Benefits of Pre-qualification?
Pre-qualification provides a range of benefits to home buyers:
– You will be able to shop with the confidence of knowing your exact price range
– You can identify credit problems that can be addressed early in the lending process
– You will typically have more negotiating power, as some sellers see more strength in offers from prequalified buyers
– If you are self-employed or your income is commission-based, pre-qualification can demonstrate financial stability
Other Pre-qualification Facts
– Pre-qualification is offered by most lenders, including PrimeLending, at no cost
– The pre-qualification process is not comprehensive and therefore is not guaranteed, nor is it considered any type of loan commitment. It simply shows that you’ve approached a lender who was serious about helping you determine what you can afford and will walk you through the process.
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