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