What Is Mortgage Pre-Qualification and Why Is It Important?
If you’re a buyer in today’s real estate market, you already know how challenging it can be. The real estate market is highly competitive, and you need to be able to move quickly in order to get into a home. One way to make your offer stronger, and move the process along a little faster, is by getting pre-qualified for a mortgage before you begin house hunting. This way, you will know exactly how much your budget is before you get your heart set on a home that is too expensive.
Key Takeaways:
- One way to make your offer stronger, and move the process along a little faster, is by getting pre-qualified for a mortgage before you begin house hunting.
- When you make an offer on a home, your Realtor will send your pre-qualification letter along with the other required paperwork to show the seller that you can afford the home for the amount that you are offering.
- The good thing is, the documents needed to get pre-qualified are all documents that are necessary to get loan approval anyway, so you aren’t doing any extra work.
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What Is Mortgage Pre-Qualification?
A mortgage pre-qualification is when a lender (like TRB) looks over all your financial documents to determine how much you can afford. We will provide you with a letter showing we are working together and that you qualify for a mortgage loan for the amount you offered on the home. The pre-qualification is not the final loan approval; but having this important step behind you is the first step towards securing your new home.
Why Do I Need to Get Pre-Qualified For A Mortgage?
Aside from the budgeting aspects, the primary reason to get pre-qualified is to make you appear as a credible buyer. This is really important since buyers need to do as much as possible to make their offer stand out to a seller.
When you make an offer on a home, your Realtor will send your pre-qualification letter along with the other required paperwork to show the seller that you can afford the home for the amount that you are offering. Your pre-qualification letter will reassure the seller; the last thing they want to do is accept an offer from a buyer who doesn’t qualify for the mortgage and have to start the sales process over again.
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How Do I Get Pre-Qualified for a Mortgage?
The process of getting pre-qualified for a mortgage is pretty simple. We will need to look at your credit, income, and assets to determine how much money you can afford to borrow. We’ll pull your credit report for you, and you’ll provide bank statements, tax returns, and your most recent paystubs to show income and assets.
The good thing is, the documents needed to get pre-qualified are all documents that are necessary to get loan approval anyway, so you aren’t doing any extra work. In fact, going about the home buying process this way is easier since you won’t be in a scramble to get your documents in order while you are under contract on a home. Having all of this submitted ahead of time may speed up the final loan approval too, which can be helpful when buying a home.
Texas Regional Bank Mortgage, NMLS Number 804865. All loans subject to approval, including credit approval. Some Restrictions may apply. Texas Regional Bank Mortgage may change the products, services, and other information described on this site at any time. Texas Regional Bank Mortgage does business as TRB Mortgage in the State of Texas.
