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MORTGAGE TIPS

Being financially prepared is one of the smartest things you can do to help the home buying process run smoothly. Getting prequalified for a mortgage gives you an idea of what your loan program and the amount you could borrow might look like in advance. This can give you an advantage during the early-stage of your house hunt such as helping prepare your budget and setting your expectations.

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Regardless of the loan amount you are prequalified for, stick to your budget and the amount you can comfortably afford. Your lender may pre-qualify you for more than you think you can comfortably afford. If this happens, you can always scale back to a lower loan amount.

What is Prequalification ?

  • Prequalification is an estimate of what you might be able to borrow.

  • It provides an estimate of your borrowing power.

  • It is based on information you provide verbally about your income, assets and debt.

  • You can receive your prequalification letter online, or in person at no-cost.

  • Prequalification is neither pre-approval or a commitment to lend; you must submit additional information for review and final approval. 

Why get Prequalified ?

Once you have built your budget and know how much of a monthly payment you can comfortably afford, getting prequalified allows you to estimate the loan amount and type that's right for you. Then, when you're searching for a home, you'll know which homes are in your price range.

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What is PreApproval ?

A conditional approval is a more serious step toward buying a home. It is a conditional commitment in writing for a specific loan program and amount. Provided all the specified conditions are met, the lender is obligated to go through with the loan.  It will also give you a general idea of your interest rate and potential monthly payment. This is the strongest financial position you can be in when submitting an offer. 

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