Get Pre-Qualified

Posted on: March 20, 2007

When you’re thinking about making a move, one of the first steps in the home buying is finding out how much you can qualify for and deciding the type of financing that will work best for you.

If you choose to become pre-qualified, the lender will determine how much you can borrow based on financial information you provide to the lender. Pre-qualification is useful for making preliminary decisions about how much home you can afford, but does not assess your creditworthiness.

We have found that it is best to actually become pre-approved for a loan prior to beginning your home search. When you are pre-approved, the lender conducts a thorough credit check and verifies your employment and deposit. The lender’s pre-approval is a commitment to loan up to a certain pre-determined amount. The only thing missing is the lender’s appraisal of the home to confirm its value.

Why is pre-approval important at the beginning of the home buying process?
Pre-approval strengthens your offer and negotiating position. A home seller will often choose an offer that is pre-approved for a mortgage over someone whose financial picture is still in question.

Article posted by Don McCredie, Principal Broker for portlandrealestate.com_