Before House Shopping, Qualify for Mortgage Loan
By: Adam Lofgren Assistant Vice President NMLS # 1087502
It can be exciting to explore open houses or wander around the web for properties on the market, dreaming of purchasing your perfect home.
But the process to buy a house should actually start with me or another mortgage lender . . . by getting prequalified for a mortgage loan.
Prequalifying for a mortgage means that we’ve checked your credit report, determined your credit score, and considered the information that we’d need to help you to obtain a loan. It can give you a good idea of what loan type and amount you may be able to qualify for.
Often, people assume that when a friend or family member get certain loan terms with a home of similar price, they’ll receive those same loan terms, but that’s not usually the case. Interest rates fluctuate, even daily, and credit scores, in particular, lead to mortgage loan terms that will vary from person to person. Getting a loan prequalification, however, allows you time to take steps that might increase your personal credit score or fix any errors that show up on your credit report.
With a prequalification, you have a general idea of what your home budget should be, so you can begin shopping for homes in that price range. And once you find that home, you can rest more assured knowing you have already started the process to secure financing.