Understanding the Perks of Pre-Qualification
When a homebuyer is prepared and all the pieces fall into place, the home-buying process can often move quickly. One way to help keep it speeding along is being pre-qualified for a mortgage loan. Pre-qualification provides homebuyers insight into how much they may be able to afford for a down payment and allows real estate agents to narrow the search.
A mortgage professional explains why being proactive can accelerate the path toward homeownership.
It Allows Homebuyers to Know Their Limits
Being aware and respectful of a budget saves time and prevents prospective homebuyers from daydreaming about out-of-budget homes. The less ambiguous homebuyers are about what they may be able to afford, the more efficient the home search will be.
“Having a mortgage professional review your credit, income and other financial liabilities will give you the advantage of knowing what you may be able to comfortably afford,” says Abel Carrasco, a loan originator with Motto Mortgage Advisors in St. Petersburg, Florida. “Your mortgage professional will issue a ‘pre-qualification letter’ to you and, armed with that, you can work with your real estate agent to make sure the homes they show you are within your budget.”
It Shows Sellers the Homebuyer is Serious
The real estate market can be a competitive space, but getting pre-qualified could give a prospective homebuyer an advantage over fellow potential buyers.
“Having a pre-qualification letter in hand lets the seller know you mean business,” says Carrasco. “It’s not uncommon in this market for sellers and their real estate agents to insist on seeing a pre-qualification letter prior to showing the home.”
It Helps Homebuyers Know How Much to Save
Prepare for success by planning and goal setting. By being organized and reasonable, homebuyers may avoid unnecessary roadblocks on the path to homeownership.
“In running through the numbers with your mortgage professional, you’ll know exactly where you stand financially in preparation for this big decision,” Carrasco explains. “Understanding how much money you’ll need to bring to closing, including down payment and closing costs, will help you better manage your spending and helps plot a course to help you achieve your goal of homeownership.”
Ready to take the first step? Call Sharon Gidley at 847-812-5081
