Tag Archives: Home Mortgage

Do You Have to Get Pre-qualified for a Home Loan?

Miniature house on family's handsEvery homeowner who has gone through the process of home buying knows how important prequalifying for a mortgage is. The process of getting prequalified for a mortgage loan involves providing your mortgage lender relevant information, such as employment information, assets, income, and debts among others. From the information you provided, your lender could then estimate the loan amount that you could qualify for.

Are There Advantages to Being Prequalified?

When you prequalify for a mortgage loan, it would help you in narrowing down the many home loan options available to you and the many houses that you might be considering. Put simply, if you know how much you could spend, you could save effort and time looking for properties that you could actually afford.

Being prequalified for a home loan would also communicate to sellers that you’re a serious buyer. Likewise, sellers consider offers from individuals who are already prequalified as more serious. In addition, being prequalified could give you that edge you need when you’re in a bidding war against other homebuyers to buy an in-demand property.

What You Should Remember

Primary Residential Mortgage, Inc. and other mortgage brokers warn that regardless of the amount that your mortgage lender prequalified you for, you must stick to an amount that you could afford.

If your lender prequalified you for a loan that’s not within your budget, you could always speak with your lender and request for a smaller loan amount. Likewise, you are not in any way obligated to tell real estate agents the amount you’re prequalified for, so it’s fine to ask them to show properties within your price range.

Yes, it’s a great idea for you to get prequalification from your mortgage lender prior to even looking around for a home to buy. This way, you would know exactly how much money you could spend for a home, without having to go over your budget. In turn, your lender could explain the different loan options you could qualify for, one that’s appropriate for your specific requirements.