What does pre-qualification mean? Why should you get prequalified? Can’t you just see a house without talking to a lender first? Where can you get prequalified?
Houses are coming on the market and going under contract in a day or two so being prequalified puts you in the game. The pre-qualification process is a critical first step in the progression of purchasing a home. To us, as Realtors, the pre-qualification process validates our client’s commitment to our partnership, igniting our trust within the purchasing process.
What does pre-qualification mean?
Being pre-qualified means that you have talked to a lender or multiple lenders and given them basic information about your financials that they use to determine how much home you can afford. The lender goes over different types of loans they have that you can qualify for and what best fits your needs. In some cases, you may find out you aren’t quite ready and they can give you some advice to get there.
Why should you get prequalified?
Budgeting and seller expectations. It helps take the pressure off of trying to figure out your budget and how much house you will be able to afford. Most sellers won’t even consider an offer that doesn’t have a pre-qualification letter attached to it they expect to see one.
Can’t you just see a house without talking to a lender first?
Technically, yes. However, if you aren’t prequalified you won’t know how much house you can afford. What if you find the perfect house, in the perfect location but after you leave the showing and finally get an appointment with a busy lender the home sells out from underneath you? Or worse yet, you find out you don’t actually qualify for that price range? The best thing to do before starting a home search is to get prequalified. It doesn’t take much time and can make all the difference in the home-buying journey.
A few local lenders we enjoy working with are: San Luis Valley Federal Bank, Rio Grande Savings and Loan, and Total Lending Concepts.
Call us today if you have questions about getting prequalified or if you are ready to buy a home!