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Housing Word of the Month: Pre-Qualification

Pre-Qualification, sometimes referred to as pre-approval, is one of the first steps in the home buying process. It is a way for home buyers to determine whether or not they can qualify for a mortgage before going through the lengthy loan process. It also allows home buyers to know how much money a lender would potentially give them towards the purchase of a home. It is important to know this information to determine the price range of homes in which they should be shopping. To obtain a pre-qualification, simply contact a lender. You will likely need to provide proof of income, and the lender will need to view your credit report. Some key things to note regarding pre-qualification: 1) while pre-qualification is a good indicator regarding your ability to get a loan, it is not a guarantee; 2) pre-qualification numbers are typically only good for 90 days; and 3) many banks and realtors will not work with you until a pre-qualification has been completed. If you are interested in buying a home or learning more about the process, call Clinch-Powell today!