The Benefits of Getting Pre-Qualified for a Mortgage Loan

When shopping around for a home to buy, there are a few things you can do to increase your chances of getting the home you want the most. One of the most important steps you can take to give yourself the edge is to get pre-qualified for your mortgage loan. Not only will this make it more likely that your bid will get chosen over another potential buyer’s bid, it will also help you complete the entire buying process more quickly.

Getting pre-qualified is really quite simple. All you have to do to get pre-qualified for a mortgage loan is provide the lender with basic information such as your assets and debts, your income, and your credit history information. With this information, the lender can make an estimation of how much of a mortgage you can afford. Most lenders will perform this service for free and it can take as little as just a few minutes, though it might take a few hours.

Pre-qualifying for a mortgage loan is no guarantee that you will be officially qualified when the time comes, but it is a strong indication that you will be. For this reason, the seller is more likely to choose your bid because he or she knows that you are likely to qualify for the loan. In addition, being pre-qualified helps make the actual qualification process quicker, which means you can get your home and the buyer can get his or her money faster.

Pre-qualification is not the same as pre-approval. With pre-approval, the lender will contact your employer as well as your bank in order to verify your personal information. In this case, the lending institution will provide you with a letter stating that you are approved for up to a certain amount of money.