First Step in Buying a Home -
Why Get Pre-Qualified?
1. Getting pre-qualified an important first step in preparing to buy a home. The mortgage lender will use details you provide about your credit, income, assets and debts to arrive at an estimate of how much mortgage you can afford. They will discuss with you what the best type of mortgage would be for you. They will also want to verify that you are prepared for the down payment and closing costs. No one wants to find the house of their dreams and not be able to buy it.
2. While a "pre-qual" is non-binding to the lender (because in most cases the information you provide has not yet been verified), it does serve as a good indication to potential sellers of your general creditworthiness and how much you have to work with.
3. In today's competitive market most sellers will not accept an offer without at least a pre-approval letter.