Getting pre-qualified for a mortgage may seem like a big process but is simple in reality. Getting ready to buy a house is exciting but can be stressful. It’s easy to feel overwhelmed with so many steps on the road. The answer to your house hunting concerns is pre-qualification of a mortgage.
At Regentology, we understand this procedure and want to assist you in becoming a homeowner. This article will help you understand why getting pre-qualified for a home loan is important.
1- What Is Pre-Qualification Mortgage
Mortgage pre-qualification means a lender is prepared to give you some money to purchase a home. Anyway, pre-qualification doesn’t guarantee a mortgage. However, it provides the maximum loan amount that one can receive.
You must have heard the terms “pre-qualification and ‘pre-approved” in the real estate world. There is a difference between these terms.
Think of pre-qualification as an estimate. This estimation is not ensured because lenders base it on a financial review. Assessing your credit score, debts, and other details, a lender will provide a number you pre-qualify for. It doesn’t have the same weight as a pre-approval but can give you an idea of what you can get pre-approved.
Lenders base this on a detailed analysis of your resources. You acquire pre-approval after lenders carry out a credit check and analyze your mortgage application.
2- Why One Should Get Pre-Qualified for a Mortgage
You may consider pre-qualification adds another thing to your to-do list. However, getting a home loan pre-qualified makes purchasing a house less difficult in the long run. With the help of pre-qualification, you can:
- Surpass Other Buyers With A Pre-Qualification Mortgage
Getting pre-qualified will give you an advantage over other buyers. It demonstrates your readiness and willingness. Your competitors may not have their pre-qualification ready, so you’ll be more attractive to sellers.
3-Knowing Your Budget
With the help of pre-qualification, one can peg down the pool of potential homes. Establish your budget based on the lending amount. It will prevent you from looking at expensive homes that are not within your budget.
- Making An Attractive Offer
After finding your dream home and putting in an offer, you want agents to pick you up without any reluctance. Mortgage pre-qualification helps put a seller’s mind at ease.
- Saves Your Time
This helps you to finalize your home loan quickly after finding your dream home. No need of filling out the paperwork and waiting for the process when you’re keen to settle down in your new home. Take care of everything in advance, so you have to worry less.
- Plan Other Expenses
Having a price range helps you plan additional costs that come with a home. Include these expenses in your budget so that you don’t go over what the lender provides.
4- When To Get Pre-Qualified For A Mortgage
The best time for getting pre-qualified for a mortgage is before your house search. You shouldn’t apply for pre-qualification without a timeline. Some other elements that contribute to when you should apply for a pre-qualified mortgage are:
- After Checking Your Credit Score
Check your credit score in advance to have an idea of how lenders will respond. Checking your score in advance may cause a primary change, but it will return to the previous number or get improved. You can use this time to get your funds in order before you apply for a pre-qualification mortgage.
- Not Long Before House Hunting
The search for a home can take a couple of months. You’ll want to make sure your pre-qualification doesn’t expire before finding a home. Knowing your timing is an important part of when to get pre-qualified for a home loan.
Regentology connects you with the best loan officers in your area to help you get the most competitive rates. Finding the right mortgage company can be confusing and many will surprise you with heavy fees. Our network of loan officers will be upfront and honest every step of the way.
Every situation is unique, and every borrower is unique. You should speak with an expert about your situation so that they can help you. We will link you with a loan officer that knows your requirements and can assist you in obtaining a mortgage. If you have any questions, please contact us.