It saves time and makes sense to find out how much you can borrow early in the home buying process. Generally pre-qualification, or pre-approval means that you get an
estimate of how much you may be able to borrow based on your
financial circumstances. Pre-approval means that you secure the lender's
commitment to let you borrow an amount before you've actually
applied for a loan.
For more information we recommend you visit our affiliates at Louvier's Mortgage.
Simply go to our Business Links page and then select the link for Louvier's Mortgage from there.
Get Organized Ahead of Time:
- Order a copy of your credit report. This will give you a chance to clear any credit problems before you submit the loan application.
- Organize your recent tax returns and financial documents.
The lender will need your financial information to determine how much you
can borrow. If you don't have all the paperwork, you can get copies by
contacting your tax-preparer, and any other people who deal with your personal
When you get pre-qualified, you will know how much you can afford and
will be in a better position as a buyer. You will
have a basis to compare different loans and make the best choice for
you, which may mean tremendous savings over the life of the loan. It
makes sense to secure a lender's commitment as soon as you
know you want to buy. This is especially true in a "hot" market when houses
are selling quickly.
Benefits of Being Pre-Approved:
- You will know how much you can borrow, so you don't waste your time looking
at properties you can't afford.
- You will have an edge when you make an offer, because the seller knows
you're qualified to get a loan and close the deal.
- You will save time when you file your actual loan application, because you've
already assembled the required paperwork.
- You will be in the best position to choose the best lender and save the most money over the life of your loan.