Determining your financial strength shows that have the ability to go through with the purchase of your new home. This information is important to owners since they do not want to accept an offer that is likely to fail because financing cannot be obtained.
Purchase forms often require buyers to apply for financing within a given time period, in many cases, seven to 10 days. By meeting with a loan officer in advance and identifying mortgage programs, it won’t be necessary to quickly find a lender, check credit, and rush into a financing decision that may not be the best option.
“Pre-Qualify” means you have met with a loan officer, your credit files have been reviewed and the loan officer believes you can readily qualify for a given loan amount with one or more specific mortgage programs. Based on this information, the lender will provide a pre-approval letter, which shows your borrowing power.
Determining how much you qualify for and payments before home shopping removes all of the stress, so shopping can be done with ease.