Ask the Experts: Prequalifying for a Home Loan

Q: Do I need to be prequalified for a loan before I start looking for a new house?

A: It’s not mandatory for potential home buyers to be prequalified, but taking this step does make the showing and buying process run more smoothly.

As a matter of fact, agents suggest speaking with a lender before you even begin shopping for a home, that way you know how much home you can comfortably afford.  By prequalifying with a lender, your agent is better able to show you listings that are in your approved price range. It’s always a difficult situation when a buyer falls in love with a home, only to be declined by a lender. Prequalifying saves time and minimizes frustration in the search phase of the home-buying experience.

When it is time to write an offer, having a prequalification letter from your lender makes your offer appear more solid to potential sellers—many of whom are receiving multiple offers in today’s market. Prequalifying for a mortgage, suggests to home sellers that you’re serious about your offer and are ready to process all the necessary paperwork in an expedited manner.

Remember, prequalifying does not mean that you’ve been approved for a mortgage loan or a specific lender, but it is a valuable step that will help minimize frustration and delays.

For more information see briggsfreeman.com/Ask-The-Experts. Click here to see more articles on home buying and selling advice in our “Ask the Experts” series. Ask the Experts: Prequalifying for a Home Loan

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Ask the Experts: Prequalifying for a Home Loan

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