How to Pre-qualify for a Mortgage
The best thing someone can do for their future is to prepare for it now. This is especially true for the aspiring homeowner who needs to lay the foundation for buying the home of their dreams. If you’re thinking of buying a home, getting pre-qualified for your mortgage can help speed up the process and prepare you for the future.
Pre-qualification is the first step on the road to acquiring a mortgage. It is typically a very straightforward, complimentary, and quick process that can be done online or over the phone. To start the process, you will need to supply your potential lender with information that gives them an idea of your overall financial picture.
Your credit score, debt-to-income ratio, total monthly bill amount, and available down payment are all aspects that a mortgage provider will need to take into consideration in order to calculate which mortgage options are best suited for you and give you an estimate of what you can afford.
While a pre-qualification is beneficial, it only takes a little extra work to obtain a pre-approval letter which shows Realtors and Sellers that you’re serious about buying a home.
The Difference Between Pre-qualification and Pre-approval
Something that many first-time home buyers fail to realize is that pre-qualification and pre-approval are two different things, and many buyers are lulled into the belief that if you are pre-qualified for a mortgage, then you are pre-approved as well. That simply isn’t the case.
After you’ve been pre-qualified, you’ll need to provide your lender with documentation proving your income (paystubs, W2’s, tax returns) and assets (bank statements, investment holdings) in order to get pre-approved for your mortgage. Your lender will verify all the information you provided and give you a pre-approval letter with a more accurate idea of the amount for which you qualify. Your pre-approval letter will get you one step closer to obtaining your mortgage.
Navigating the Mortgage Process
While pre-qualification and pre-approval are beneficial, neither guarantee your mortgage will be approved. You’ll want a mortgage lender on your side who knows the ins and outs of the process and ensures you’re getting what you need to own your home. Fortunately, Butler Mortgage is here to help.
Experienced Mortgage Professionals in Central Florida
For over 25 years, Butler Mortgage has worked with both first-time and seasoned buyers wanting to own a home in Central Florida. Let us help you find the right loan solution for you by calling 407-931-3800 or by filling out our free consultation form online.