While every homebuying experience is unique, getting pre-qualified is always a good idea. Primary Residential Mortgage, Inc. can help you get pre-qualified and walk you through the benefits.
Pre-qualified or Preapproved
Before we get into the benefits of getting pre-qualified we need to define what it means. Being pre-qualified means a lender deems that you fit the eligibility requirements for a loan program at an estimated amount. The lender will make that decision based on the income, debt, and credit information you provide. This does not mean you’ve been approved for the loan.
Getting preapproved involves checking your credit report, reviewing financial details and documents and going through the underwriting process. It is more official than getting pre-qualified.
1. You can identify potential borrowing issues with time to address them.
The process of getting pre-qualified can help you discover if there are any issues in your financial information or credit that may make getting a loan more difficult. Learning this before you shop for a home gives you time to work with your Loan Officer to fix issues and have the peace of mind that things are going to be okay. No one wants to find their dream home only to lose it because they couldn’t get financing in time due to some unknown blemish.
2. You’ll know your price range.
You’ll enjoy home shopping much more when you know your price range going in. You can save yourself a lot of disappointment by not wasting time looking at homes that are out of your price range. When you get pre-qualified, you’ll know ahead of time which homes you should be looking at based on the amount you qualify for.
3. Sellers know you’re serious which can accelerate the purchase process.
When you’re pre-qualified, and especially when you’re preapproved, you’ve shown the seller you mean business. Not only do you have a clear path to financing, you’ve already invested the time and effort upfront. Sellers can see that and know it’s less likely that you’ll make a phony offer or back out at the last minute. This serious buying intent can make a difference when a seller is deciding whether to accept your offer and begin closing the sale.
Take the first step to your new home!
If you’re interested in buying a home, your first move should be to contact a Loan Officer and get pre-qualified. You’ll be glad you did.
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