Real Estate Agents Near Me

What Is Pre-Qualification?

Pre-Qualification is the process of obtaining an estimate for the amount that you can borrow for your home, based on both a credit check and financial information. A Mortgage Loan Originator will process the pre-qualified similar to a regular loan application and will analyze income, credit score, and debt ratio to provide a maximum purchase price for the buyer. This will allow the buyer to have a clear picture of their buying power when viewing homes.

Why Get Pre-Qualified?

You should get pre-qualified early on in your home buying journey, because this will provide you information about your true buying power. Knowing your buying power will allow you to not have any what ifs when viewing homes or fall in love with a home outside of your range. You’ll have a clear idea of what you can spend and use that information to make the best, informed decision.

Additionally, one can’t even attempt to make an offer on a home without getting pre-qualified first. This is one of the first steps for purchasing a new home and will make the process of buying a home much easier!