Whether you a first-time buyer or a veteran homeowner, pre-qualification for a loan can mean the difference between getting a home and getting the home of your dreams.
Pre-qualification is a document that tells a seller how much a mortgage lender is willing to lend you. It isn’t a guarantee that you will get the loan, but it is a good starting place. To become pre-qualified, you have demonstrated that you are financially able to pay back your loan. Pre-qualification confers several advantages, and in this seller’s market, you need all the advantages you can get.
You’ll Know What You Can Afford
Pre-qualification is an informal process, but it is better than sitting at the kitchen table crunching numbers. You will meet with one or more lenders who will walk you through the process of applying for a loan, including giving them your financial information. The lender will give you an estimate of how much you can borrow. That gives you a budget. You might even discover you can afford more home than you originally thought.
You Won’t Be Stressed (Well, Not as Much)
Home buying is stressful, but being pre-qualified lessens the stress because you know how much you can spend. You can spend more time figuring out where you want to live, what schools your kids will go to and what upgrades and options you want.
The Seller Will Love You
When it comes to homes for sale, inventory is low right now. That means you need a competitive edge. Pre-qualifying can get you that edge. If you place an offer, you’ve already demonstrated to the seller that you are serious. If someone else makes an offer but isn’t pre-qualified, the seller is more likely to choose you because you’ve already done the hard work.
You Can Negotiate
Think you can’t negotiate a better price or for the upgrades you want? Think again. Pre-qualification carries weight with sellers. They want you to buy their home because they know you can get the loan you need to buy the house.
Once You Are Pre-qualified
Remember that pre-qualification is not pre-approval. You still must get the loan. It should be easier because you’ve already jumped through some of the hoops. Shop different lenders to get the best deal. Then it’s time to shop for your dream home. We suggest you start with Marvida. Our builders offer great floor plans, and they love pre-qualified buyers.