How to Prequalify for a Mortgage
Loan prequalification is an important initial step in the home buying process.
As you begin looking for your home, having a prequalification letter will help you:
- Know how much money you may qualify to borrow
- Determine your price range for homes
- Strengthen your ability to negotiate with sellers
While loan prequalification isn’t a commitment from a lender, it is good information to have during your home shopping and loan approval process.
The important thing to keep in mind is a reasonable budget. Even if you are prequalified for a higher amount than you expected, use a calculator to determine a comfortable monthly cost. If your realtor shows you homes in the higher range of your loan prequalification amount and the monthly payments would put your budget in a pinch, ask for other options or consider applying for a lower loan amount.
Loan prequalification helps you make a better home-buying decision—one that’s best for you and your finances.
Want to get prequalified for a mortgage? We’re here to help. Before we speak, gather information about your income and assets so we can determine your eligibility. Then, contact a Mortgage Specialist today!
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