Are you pre-qualified for a loan? Before you begin to shop for a new home, get pre-qualified. The process includes getting a credit report and automated underwriting findings from one of the agencies like Fannie Mae or Freddie Mac. This is the best way to figure out how much you can afford and will put you in a better position as a buyer.To get pre-qualified for a loan, I will collect information about your debt, income, and assets. We’ll look at your credit profile and assess goals for a down payment and get an idea of different loan programs that would best suit your needs. We will give you a pre-qualification letter indicating the amount you are pre-qualified to borrow and spend on a home.
It is important to understand that a pre-qualification letter is an estimate of what you are eligible to borrow, not a commitment to lend. Taken a step further, getting pre-approved for a loan gives you a competitive advantage when the time comes to bid on a home.
To get pre-approved, you will complete a mortgage application and provide me with copies of documents including pay stubs, w2s and bank statements. We’ll review your mortgage options and submit the information to the program yhat best meets your needs. Once the application process is complete you will receive a pre-approval letter indicating the amount your lender is willing to lend you for your home.
A pre-approval letter is not binding on the lender; it is subject to an appraisal of the home you wish to purchase and certain other conditions. If your financial situation changes (e.g. you lose your job), interest rates rise or a specified expiration date passes, your lender must review your situation and recalculate your mortgage amount accordingly.
Are you pre-qualified for a loan?
