Pre Qualified Mortgage

Pre Qualified Mortgage:- You might have heard of the term pre-qualified Mortgage and pre-approved Mortgage. These are the terms associated with the acquisition of mortgage loan for buying a property of a home. Pre-qualified mortgages in one of the major step for acquiring a mortgage loan. It the getting to know stage for the buyer and the lender. Though nothing is confirmed or promised at this stage.

Talking about mortgage, pre-qualified is the stage when both lender and borrower start getting to know each other. Lender needs to see the financial information of the borrower including the debt, assets and income. After which the lender would give an idea on how much amount the borrower would qualify. Pre-qualification can be done over phone or internet, thus there is no cost involved in the process. Also, pre-qualified mortgage does not include an analysis of the credit report or an in-depth look at borrower’s ability to purchase a home.

It is important to get pre-qualified from the lender for the mortgage as -

  • It helps buyer save time - It is important fro the borrower to get an idea on the price range of the mortgage loan in the initial stages of hunting the house. This will help the borrower have better search and would manage the expectations.
  • It helps buyer understand Mortgage options - Pre- qualification enables buyers and lenders to discuss various types of mortgage options
  • It let buyer to shop around and find the right lender - Applying for pre-qualification from different lenders would help buyer compare better and choose the right lender as per their requirement and financial abilities.
  • Though at first you might not give pre-qualified mortgage as much importance as it is just the preliminary indulgence. However, it is definitely advantageous especially on part of buyer as the process will help a buyer get a better know of how it would be to work with a lender through the whole home buying process.