Why it's important to be pre-qualified before starting your home search

A few reasons you should get prequalified before you begin your home search:

1.  Many realtors won’t show you homes until you’re prequalified.

Sellers will typically only consider offers from potential buyers who are prequalified.  A prequalification letter lets sellers know you are qualified and serious about purchasing a home. 

2.  The prequalification process helps you to better understand your budget.

As part of the prequalification process, we help you understand what you can qualify for including purchasing price, down payment amounts and monthly payments.

3.  It’s difficult to look at homes without knowing what monthly payment you are comfortable with.

Not knowing how much home you can afford can lead to disappointment and heartache.  When you fall in love with a home – “it’s perfect!” – it can be very tempting to stretch the budget. Going over budget can put you at risk of foreclosure down the road.

It’s also important to take into consideration your own comfort level when it comes to determining the monthly payments. Everyone’s situation is different which is why it’s important to review all your income and expenses with your lender. We take a deeper look at this in the blog, “How much home can I afford to buy?”

The prequalification process helps you just as much as it helps lenders and realtors.