Why Get Pre-Qualified?
1. Pre-qualification acts as a dry run of the loan application process. The mortgage lender will use details you provide about your credit, income, assets and debts to arrive at an estimate of how much mortgage you can afford. The whole process may take only minutes or a few hours at most, and is free.
2. While a "pre-qual" is non-binding to the lender (because the information you provide has not been verified), it does serve as a good indication to potential sellers of your general creditworthiness.
3. These days most sellers will NOT accept an offer without at least a pre-approval letter, so if you are serious about buying this is the first step towards getting you in your new home.
Consider Your Down Payment
Almost all home buyers will have to come up with a significant down payment, typically 20% in today's market, in order to qualify for a traditional mortgage.
A down payment can come from many places: savings, investments such as stocks and bonds, gifts from relatives, company bonuses, equity in other assets, and life insurance policies, to name a few.
If you currently own a home, you may want the equity you have built in that house to serve as the down payment on your next home.
But how much is your current home worth? I would be happy to provide you with a market valuation so that you will know its current value. Give me a call today.