Before you begin searching for a new home, you need to determine how much you can afford. You may be able to afford more or even less than you think due to what the lender is willing to loan you based on your income and the amount of down payment you have. By getting pre-qualified before looking for a home, you’ll save yourself time, energy and frustration because pre-qualification:
At this point, the lender can also help you determine alternatives and strategies that could help you buy the home of your dreams. These may include:
In order to pre-qualify you, the lender will need to know the following:
After a brief discussion during which the loan officer will ask you some general questions about your income, debt, and assets, it is best to meet with the loan officer in person to be pre-qualified. When you are pre-qualified you will receive a Pre-Qualification Certificate to give to your real estate agent. When you find a home, they can then use the certificate to present your offer. The seller may be more likely to accept your contract because they know you are qualified to buy their home.