Pre-Qualified for a loan—Now, that you have decided to continue on your home purchasing journey, you are ready to become pre-qualified for making that purchase. What does it mean to be pre-qualified? A bank, credit union, or mortgage company can pre-qualify you. A pre-qualified buyer is someone who contacts a lender and speaks about their financial situation. The lender, based on what the prospective borrower said to them, can conclude that the borrower is qualified to purchase. Some common questions asked by a lender are:
What is your marital status?
What is the total gross household income?
How long have you worked at your current job?
Have you filed bankruptcy in the last 2 years?
Do you have other established credit?
Have you owned a home before?
If you currently rent, have you lived there over a year?
Do you have a copy of your W-2 forms or if self-employed a copy of the 1099?
It’s important for you to become pre-qualified because this gives you an idea of what kind of home you can afford. Once you know your comfort payment, you can begin looking for your new home.
Soon to follow, What your new home looks like, wants and needs!!