Step 9: Get Pre-Qualified for Your Mortgage
You can get pre-qualified for a mortgage loan before selecting a house or before knowing the actual sale price. During this phase, you can approach one or more mortgage lending companies and ask them to pre-qualify you for a mortgage loan. The mortgage company pre-qualifies you based upon some of the same criteria that they would otherwise use during real mortgage qualification. Pre qualification is generally a good idea for home buyers because of the following reasons:
- Similar to real qualification: In many instances the mortgage company evaluates your pre-qualification application based upon some of the same criteria as a real mortgage loan application. The advantage is that once pre-approved, you have a fairly good chance of getting approval when applying for real mortgage.
- Issues Resolution: Some of the issues associated with mortgage qualification may get resolved during the pre-qualification phase.
- Mortgage Loan Amount: You will get a fairly good idea about an approximate mortgage amount that you can qualify for.
- Pursue Other Mortgage Companies: If a mortgage company does not pre-qualify you or rejects your application for some reason then you have enough time to pursue other mortgage companies.
- Pre-Qualified buyer: An offer from a pre-qualified buyer generally carries more weight than a similar offer from a non pre-qualified buyer.
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