The When, Why and How of Pre-Qualification

Mortgages

New home buyers looking for Saint Augustine florida real estate or Ponte Vedra real estate are often left wondering where to start this often confusing process of home buying and securing a mortgage. Even the experienced purchasers may forget what steps to take on a prioritized basis.

Often the first step is pre-qualification. Here are reasons why many buyers requires pre-qualification, the initial process and knowledge of what it does for you.

Getting Prequalified:

1. Determines Credit Standing:

Having a current tri-merge credit report pulled is necessary to show what category of risk you will fall into. This will also directly affect your interest rate, thereby affecting how much home you can afford. Any credit restrictions will also surface right away giving you ample time to work on blemishes before you get to the tight timing stage of the purchase. Since your loan details and rates you qualify for are primarily driven on your credit mid-score, little is known what can be done for you before having this document in hand.

2. Required for Home Showings:

Seller’s Agents most often require that the Purchasing Agent’s Buyers be pre-qualified before even looking at the house. The average seller does not want people having access to their home with no determination of whether they possess ability to purchase it.

3. It Does not lock you in to a Mortgage Lender:

Just because you call on a mortgage official for a pre-qualification letter, this does not mean you have to stay with them. Most of the time you are not charged for your initial credit report at the time of obtaining it and have the right to switch lenders whenever you see fit. Hopping from lender to lender is not preferred, however, it should not be a reason to delay getting started.

When starting the process looking for Saint Augustine Florida real estate or Ponte Vedra real estate, your best bet is to get the necessary step of becoming pre-qualified out of the way and contact both your Realtor and Mortgage Lender. Spending a bit of time now doing so will save you a lot of time down the road, when time may be more critical.

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