WHY IT'S IMPORTANT TO PRE-QUALIFY
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Even if you haven't narrowed down houses to view yet, it's important to visit with Ginger Sullivan, your mortgage loan consultant, early into your mortgage process. Why? Below is a discussion as to some of the benefits of early pre-qualification.
How We Help You Pre-Qualify
When we pre-qualify you, we help you determine how much of a monthly mortgage payment you can afford, and the loan amount for which you'll qualify. We do this by reviewing your income and debts, your employment and housing circumstances, your available funds for a down payment, required reserves for certain loan programs, as well as other considerations. (Interestingly, sometimes you qualify for more of a mortgage -- or less -- than you had originally planned for.) At this "Pre-qualification Stage", we'll ask for a minimum amount of paperwork.
After you pre-qualify, we'll let you know that you are able to purchase a home within certain sales price parameters, which we'll also share with your Realtor (as you request), so (s)he shows you only homes in your price range. Sometimes, you are able to qualify for a greater mortgage amount than makes you comfortable, at which point we only share with your Realtor the range of home purchase value within your monthly payment and down payment comfort range.
If you find a home, during the pre-qualification stage, on which you want to make an offer, we'll issue a "Pre-qualification Letter", specific to the property address, which states that we are working with you to find the ideal loan to meet your financial needs. and that we are confident you'll qualify for a loan for the subject property.
If you have your pre-qualification letter, you'll have several advantages. The first is that YOU can be sure what you'll be able to afford when calculating your offer (and not be disappointed if later you find you don't qualify for the home purchase you had intended). Secondly, your Realtor will be more confident that you are a "willing and able" buyer, thus (s)he will spend more time and effort researching the market for your "perfect" home.
Thirdly, should you want to make a purchase offer, your "pre-qual" demonstrates to the home seller that you have taken your first steps towards understanding that you have the ability to purchase their home. The seller won't have to be concerned that they're wasting their time considering your offer, and that you are just shopping with a "wish and a dream".
As the seller is considering your offer, and perhaps other offers that come in simultaneously, the seller will feel more confident your offer, accompanied by your pre-qualification letter, has more viability that an offer -- even with a higher offer price -- which comes in without a pre-qualification (or pre-approval) letter.
While you are able to benefit from our mortgage calculators on this website, it will be a good idea to have a phone discussion or in-person meeting with Ginger. That way, we can help you choose the ideal mortgage program for your situation. Let's get you started.
Have more questions about pre-qualifying? Call Ginger at 505-995-8888. She'll work on your timeline with you.