Getting pre-qualified for a home loan is a great way to guide you on your home search. What is pre-qualification? What are the benefits? Is it right for you? PrimeLending can help you answer all of these questions and others.

STEP 3: Pre-Qualification

Getting pre-qualified for a loan before you start looking serves as the best roadmap for your home-buying journey.

What is Pre-Qualification?
Pre-qualification is an estimate of what you might be able to borrow. You will provide your lender with information about your income and assets, and sometimes will submit to a credit check. Your lender then gives you an estimate of your loan amount and loan program.

How Does Getting Pre-Qualified Benefit You?

  • 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 pre-qualified buyers.
  • If you are self-employed or a commission-based buyer, pre-qualification can demonstrate financial backing if your income fluctuates more than those of salaried buyers.
  • Pre-qualification gives first-time homebuyers the advantage of equalizing their offer with similar offers made by previous homeowners.

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.

Go to Step 4: Finding Your Home