What is pre-qualifying?
Pre-qualifying is a process whereby a loan officer obtains
information about you, either over the telephone or face-to-face and
indicates the loan amount you can qualify for and the best type of loan to
meet your particular needs. The
loan officer will want to know information about your income and a list of
your debts. The lender through a
series of calculations will be able to determine the size of a loan you
qualify for based upon loans available in today’s market.
This is referred to as your income to debt ratio.
The term pre-qualified simply means that a mortgage or real estate
representative has examined your income to debt ratios...this does not
mean pre-approved. The lender would
then give you a "pre-qualifying letter" which is of considerable
value in dealing with a Realtor or a potential seller.
Realtors and sellers are interested in dealing with people whom
they know to be able to get the
loan necessary to close the deal. Sometimes
sellers are anxious and will take somewhat less in price from someone who
can close quickly. If you are about
to begin the process of buying a home we would strongly recommend
pre-approval over simply being pre-qualified.
Landmark Mortgage
specializes in assisting individuals with obtaining home loans, including
pre-qualification and pre-approval.
We can advise you on the best
approach and help you get the house of your dreams!
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