Have you heard the term prequalification?
What is it?
Prequalification is usually a quick and simple process that is cost free to a buyer and assist them in finding a home they can truly afford. Buyers that are not prequalified may have great disappointment in finding a home they want and further get emotionally attached to that home just to find out they can’t afford it. By first providing documentation regarding your debts, income and any assets a good lender will also check your credit then give you an idea of the different types of mortgage loans and the loan amount you would qualify for.
Why is it important?
There are several reasons;
- You will know in advance what your payments will be. If you plan and budget in advance, prequalification will give you a boost ahead.
- You won’t waste time considering homes you can’t afford.
- You can select the best loan package that suits your needs.
- Your offers may be more appealing to sellers if they know in advance that you are serious and have the ability to secure financing. Great in situations when competing offers come into play.
- Experienced Realtors are reluctant to work with buyers who are not prequalified. To a realtor you the client are an investment. They invest their time and resources in finding you a home. If you are not prequalified their efforts may be all in vain.
- Prequalification will expedite the home purchase process which will get you in your new home faster!
Please keep in mind that although you obtain a prequalification letter from a lender, it is not an absolute guarantee of obtaining a loan. The prequalification letter itself will state that your credit and financial information has been reviewed and is acceptable to get a loan.
At AgentOwned Realty, we have a sister company in our office that can painlessly assist you with the prequalification process. They are very proficient and can find the best rates for you.
Contact Mortgage Consultants Gabriella Heymans or Rex Ann Strecker, they are with Prosperity Home Mortgage at 843-971-5689.
Tell them Lester sent you!