You’ve found your dream home. Everything from the neighborhood to the floor plan is perfect. The only problem - you haven’t been pre-qualified for a mortgage yet and you’re afraid other parties are interested in the house. At Equity Bank, we know the feeling of finding that perfect home and we want to help you save time to ensure that you don’t miss out. That is why we encourage homebuyers to pre-qualify for their mortgage before starting their search for a new home.

The Benefits of Pre-Qualification

Pre-qualification is important, especially for first-time homebuyers, because it can provide a good understanding of how much money you will be allowed to borrow. This allows you, the buyer, to narrow your search to houses that fall within the range of the loan. Pre-qualification also demonstrates to selling parties and their realtors that you are serious about purchasing a new home, and can motivate a seller that may have multiple offers on their house.

The Pre-Qualification Process

Mortgage pre-qualification generally doesn’t take much time and is usually just a quick call or meeting with your lending specialist. The process will involve answering some general financial questions, such as the amount of debt you have accrued, your monthly income, and any assets you may have. Lenders may also ask how much you are looking to put down on your house as well as how much you are looking to pay each month for your mortgage. These questions allow your lending specialist to better understand your financial position and therefore provide you with the most accurate pre-qualified amount. Once you are pre-qualified, you will be given a pre-qualification letter that informs the seller of your status.

It is important to note that your pre-qualified amount may not be the same as your final loan approval. In order to be fully approved, lending parties require official documents (such as your tax returns) and will look deeper into areas such as your credit score and employment history. When you seek to become pre-qualified, lending specialists will only take the information that you give them. For the most accurate pre-qualified amount, make sure to give as accurate of information as possible.

Equity Bank is here to help guide the way

Whether it’s a buyer’s or seller’s market, it’s always good to get a leg up on the competition. Pre-qualifying for a loan allows you to do just that. At Equity Bank, we are here to help you understand every step of the home buying process. Contact your local Equity Bank lending specialist with any questions about loan pre-qualification.

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