What Is Prequalification & How Can It Help?
A mortgage prequalification can help set you up for success. Show sellers you’re a motivated buyer and stick to your budget & goals with confidence.
What is Prequalification?
The prequalification process requires that you submit an application (leaving property information blank), which will then be reviewed by a mortgage professional who will run a credit report and provide you with the amount you qualify for as well as help you identify the mortgage program best suited to your needs.
Why should I get Prequalified?
The prequalification process gives you an amount you are likely to be approved for if you were to apply for a loan. This is an initial step in the mortgage transaction that benefits you as a borrower.
A prequalification can help you determine what price range of homes you should be considering, and there is no cost or fee involved. When you really want to buy a home, the preapproval letter provides more concrete proof that you can make the deal happen.
What is the Prequalification Process?
Getting prequalified is a simple and quick process, and can even be done over the phone. Your loan officer will require information about your basic finances, such as debt, income, and assets. After running these numbers and evaluating them, he/she can tell you an amount you may qualify to borrow.