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.

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.

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.