5 Advantageous of Pre-qualifying First

1. When you touch basis with a mortgage lender, you determine if you even qualify to buy a home. While you may think your credit is “not bad”, in today’s lending market, guidelines have become more strict.
2. If during the pre-qualification step, you find out that there are dings on your credit report that shouldn’t be there, this is the time to clear them up. The last thing you want, is an incorrect report preventing you from buying your dream home.
3. You have an opportunity to gage your buying power and more importantly, determining a comfortable mortgage payment. You shouldn’t be shopping between $180,000 to $200,000 if your comfortable mortgage payment range is $900 to $1,000.
4. You can get a good idea of what your needs are. For example, if you don’t have money saved for a down payment, then getting qualified for the down payment assistance program should be your initial goal. Then, if you need closing cost assistance, you can shop for a deal where the seller will pay part or all of your closing costs. Closing costs can be 4%+ of the sales price. Knowing this beforehand can make your buying experience easier.
5. You will save yourself time and disappointment. Imagine spending weeks searching and viewing homes that are $20,000+ out of your range. You’ll not only waste time, but you will have set the bar at one level, only to discover you that you need to bring it down.
Don’t go against the grain on this advice. Approach the home buying process wisely by not skipping the first and most important step.
Bonnie Kelly
www.BonnieKelly.com
505-350-8672