Why Pre-Qualification is a Must

Buying a home comes with a wide range of emotions. The decision to buy is the easy part. Next comes finding the perfect home and waiting to see if your offer will get accepted. Then there are the home inspections, price negotiation, and finally, the closing.

Throughout the mortgage process, you’ll work with our lenders and underwriters. To help alleviate the stress of financing your new home, we recommend pre-qualification.

Mortgage pre-qualification is recommended for a lot of reasons. Learn the importance of pre-qualification and why it takes the stress from the home buying process.

Why is Pre-Qualification Recommended?

Pre-qualification is recommended for homebuyers because it sets a realistic expectation for how much money they must have to buy a house. If the type of home or area they want to live in is out of their price range, they can save for a bigger down payment or focus their search elsewhere.

Pre-qualification is also recommended as part of first-time homebuyer programs. Participants can receive grants to put towards their down payment and closing costs. In addition, they learn how to budget and the steps to homeownership.

Move to the Head of the Line

When multiple homebuyers bid on a property, the homeowner must decide which offer to accept. There is no guarantee they will go with the highest bidder or the first bid. Homeowners can set criteria when it comes to accepting an offer.

Sellers understand the importance of pre-qualification. It adds a level of confidence that the sale will go through without any glitches.

Correct Problems Before Making an Offer

Looking for a home and buying a home are two separate things. Until you’re approved for a mortgage, you don’t know what can pop up at the last minute. Taking the time to pre-qualify for a mortgage gives the buyer a head start on correcting any issues with their credit and finances.

Before starting the home buying process, you should know what’s on your credit report. Paying off a $500 debt is much easier than a $5,000 debt.

The lender can help you understand the impact on your interest rate and ability to borrow money based on what is revealed.

Helps With Choosing the Right Home

Pre-qualification is also a reality check. Once you know how much mortgage you are approved for, you can start looking for a home aligned with your resources.

One reason for the housing crash of 2008 was people buying homes they couldn’t afford. You can avoid that risk with a pre-qualification of a particular loan.

Get Pre-Qualified Today

Understanding why pre-qualification is vital in the home buying process will make your experience more enjoyable. It sets clear expectations and eliminates surprises as you approach your closing date.

Look to JTS & Co. Mortgage Professionals for our years of experience in VA, USDA, Conventional, FHA, and jumbo loans. Plus, we can help with refinancing and standard mortgages.

Click here to connect with one of our mortgage professionals to help you choose the right path for your home loan.