Wednesday, August 7, 2013

What does it mean to be "Pre-Qualified" and why is it important

Pre-Qualification is just what it sounds like.  It is the process of getting qualified for something.  In this case it is a mortgage.  Said another way it is getting financing approval with a lender based on various lending guidelines.  It is finding out how much of a mortgage you qualify for and finding out what payment meets your needs.  A Pre-Qualification will let a seller know you are serious.  It is somewhat like having cash in hand that tells the seller you can back up your purchase offer.  It moves you to the head of the line in the sellers mind.  Realtors like a Pre-Qualification because they can then show you homes that fit your budget and that you are qualied to buy. 

The process of getting Pre-Qualified is straight forward.  You meet with the lender either in person or over the phone.  The lender will ask questions about your job and your income.  They will ask where you currently live and how long you have been there.  And what assets and debts you have.  The whole process is free and shouldn't take longer than 15-30 minutes.  The time you spend with the lender is also a great time to ask them questions and educate yourself about financing a home.  Feel free to call me if I can be of service.

Jon Southwick, Mortgage Banker NMLS# 314699
Republic Mortgage Home Loans NMLS# 3148
801-628-2890

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