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The First Step in Your Mortgage Qualification Process

by Chris Smith Realty 09/10/2019

Potential home buyers should obtain a pre-qualification letter from their lenders to access a home loan. This letter communicates what the lender thinks about you being qualified for a mortgage up to a certain amount and is dependent on the data you gave about your assets, income, and expenses.

Pre-qualification is just the primary step, and it provides you with an idea of how much of a loan you will potentially qualify for. This process relies on consumer-submitted information.

Getting Pre-Qualified

Pre-qualification entails providing the lender with your overall financial picture, including your credit, debt, income, and assets. The lender evaluates everything and gives you an estimate of the amount you are expected to be able to borrow.

Pre-qualification can be conducted over the phone or via online, and there is no cost attached. It is usually a quick process, taking from one to three days to obtain a pre-qualification letter. Remember that loan pre-qualification does not include a review of your credit report or a detailed look at your ability to buy a home. Instead, it is only dependent on the data you provided to the lender. By extension, it doesn't mean much at all if you provide inaccurate information. 

The first step in the pre-qualification process allows you to talk with your lender about any needs or goals you might have regarding your mortgage. Then, your mortgage lender can tell your various mortgage options and discuss the type that might be the most suited for your needs.

Some brokers go the extra mile of requesting home buyers to have pre-qualification before working with them. The letter would signify that a lender has already started talking with the buyer. A properly-written pre-qualification letter clarifies that you are using a quality, legitimate lender who can be reached for verification and confirmation.

According to many real estate agents, in a highly competitive market, a pre-qualification letter might not be enough. This is a significant drawback in using and relying only on a pre-qualification letter for proof of ability to purchase a home. If you need to buy immediately or don't want to miss out on a great deal in a trending area, you may need to be pre-approved as well. Pre-approval is a more complicated process and can impact your credit score, so speak with your agent about which is the better option for your situation.

About the Author
Author

Chris Smith Realty

 

At Chris Smith Realty we know that helping people realize a dream of home ownership – building their life stories or helping people move on to a new part of their lives by selling their home is a very personal and important decision. We at Chris Smith Realty excel in partnering with our clients to give them a positive experience.

Chris Smith , Broker/Owner of Chris Smith Realty, Spring Lake, NJ (www.chrissmithrealty.com), has over thirty-one years of extensive real estate experience and expertise and has passed his knowledge to his superior sales staff. Chris Smith Realty can provide information on Spring Lake, Sea Girt, Manasquan, Brielle, Wall, Belmar, Avon-by-the-Sea and the surrounding areas in Monmouth and Ocean counties. As premier real estate agents, we invite you to call us at 732-449-3777 or email us at [email protected]

Buying a home? We will help you find the home of your dreams by taking the time to listen and understand your needs and desires. Once we know what you want, we will work tirelessly to find the right home for you, because no one should have to compromise when it comes to such a huge purchase. Your total satisfaction is our number one priority.

Selling your home? Our expertise in the Spring Lake, Sea Girt, Manasquan, Brielle, Wall, Belmar, Avon, Monmouth and Ocean Counties real estate market will help ensure that you get the best price for your property. Our finely-tuned marketing program will give you the edge you need to sell your home. We don’t want to just list your home, we want to sell it! Fast!

Relocating? If you are moving to our area, we can assist you in collecting the information you need, and make your transition as smooth as possible. Feel free to contact us for any information you need. We love to assist people in relocating, and we’ve helped many people move to our area!

We hope that you find our website to be a great source of information and visit often. Whether you are looking for Homes for Sale, Moving Resources, or even Mortgage Information everything you need is right here.

We have built a reputation for client satisfaction, and we are devoted to making your move as easy as possible. You will have the added benefit of working with agents who understand your needs when buying, selling, or relocating. Finding the right home is only the beginning. We will assist you every step of the way to ensure smooth sailing.

We are always available to offer you personal, one-on-one help with what some say is the biggest decision you will make in your life. If you have any questions, please don’t hesitate to call or e-mail us!

Thank you for visiting our site. Please bookmark it, and visit it often.

We look forward to hearing from you!

Sincerely,

Chris Smith

Broker/Owner