How and Why to Get Pre-Qualified for a Home Loan

Why pre-qualify for a loan?  It's a big word and sounds kind of scary.  What if I don't qualify?  Getting pre-qualified with a lender is actually simple and quick.  A pre-qualification isn't a promise for the loan, it is the lender saying that according to the information you have presented, they think you can buy a home up to "X" amount of dollars.  They will ask a couple questions like what do you make a month and what are your bills.  They may want to see the last year or two of taxes.  Answer their questions and they will give you a number that they think you can afford.  This number is often higher than you will want to spend, but with the letter, you can start your search.

There are a couple of reasons why you should want to get pre-qualified before starting to look.  The main reason is because without it, if another offer comes in on your perfect home and they have been pre-qualified, they will probably get your home and that is devastating.  The other main reason is that the seller is going to clean their home and vacate it during the showing in most cases.  A good seller's agent will want to make sure the buyer is qualified before putting their seller through the extra work. 

Getting pre-qualified is the first easy step before setting up showings.  It is there to help you narrow down the homes to look at and help you find the perfect home that fits your budget.  You can usually get pre-qualified in a day and your agent will normally be happy to assist by giving you names of lenders that have helped their clients in the past.  Start building that relationship as the lender will be the one that helps you make your big move.  Get pre-qualified and let's find you your home in Hawaii!  Aloha! Ron Teichman