Should I Get Pre-Qualified for a Mortgage for my New Home?
- Pre-qualification for a mortgage acts as a dry run for the loan application process. Your mortgage lender or broker will use details that you provide regarding your credit, income, assets, and specific debts to arrive at an estimate of how much mortgage you can afford. The whole process may take only minutes, or perhaps a few hours at most. And the pre-qualification service is free.
- While a loan pre-qualification is non-binding to the lender (because the information you provide has not been verified), it does serve as a very good indication to potential sellers of your general creditworthiness.
- These days, most sellers will not accept an offer without at least a pre-approval letter; so, if you are serious about buying, this is the first step towards moving you closer to moving into your new home.