Getting Pre-Qualified

How to Get Prequalified for a Home Loan

Imagine losing the deal of your most cherished dream home to another buyer just because the mortgage loan was not approved in time. It happens many often because the entire procedure of loan approval takes time and many a times you just end up running from one bank to another with your papers to get the approval of loan at the earliest.

You can easily avert such a situation if you get pre-qualified for purchasing the property. The entire process is very easy and will always guarantee that on no account you lose any deal due to lack of funding. Generally getting a loan sanctioned one has to move around banks which can take a lot of your time. On top of that there is lots of documentation involved in the complete procedure which will again take time. And in the course of action you may lose the house that you have an eye on to another buyer.

Getting pre-qualified to buy a house is extremely trouble-free and you do not even have to visit the bank. You will be able to do it from home by speaking to a loan expert on phone or even register online. They will question you regarding your financial position, your income and your previous loans. On the basis of information given by you, they will inform you the rough amount that you can get as loan from the bank.

They will also question you about any short sale or foreclosure property dealings in the past. Your credit status will also be analyzed by them. What they want to see is your capability to repay the loan amount once it is approved. Once they are assured they will then tell you the rough amount that you can get. Most of the banks give you verbal conformation of the estimated amount after which you can start with hunting for your dream house and also start applying for the loan process. Pre-qualifying for the purchase of property helps you in evaluation of the budget for investing.

Some of the banks give you pre-qualified letter also which help you finalize the deal for the house quickly. But you must not get confused with a pre-qualified letter and a pre-approval letter. You must understand here that a pre-qualified letter is mostly based on verbal information given by you, whereas the pre-approval letter is based on documentation like your salary slips, credit report and tax records. With pre-approval letter it is completely assured that your funds are on your way but pre-qualifying is actually the first step towards a mortgage loan. Once you get pre-approval letter then it is going to influence your credit status.

Getting pre-qualified for property purchase in case of first time buyers is always advisable because it will help them in checking out plans for invest in the property. Also as a buyer you save time on any purchase as you now know the approximate amount that you are eligible to get as mortgage loan and that will help you targeting those properties that are within your budget.