Ready to Buy a New Home?
A new home may be an accomplishment to be proud of, a safe place to raise a family, or your very own sanctuary in a busy world. However, it’s also a major investment with a large price tag; most people don’t pay cash for their home. Most home buyers take out a home loan, also called a mortgage. Pre-qualification can make the process of buying a new home and getting a mortgage smoother and quicker.
What is Pre-Qualification?
Pre-qualification is an informal estimate of how much a home buyer can borrow for a mortgage. A pre-qualification letter can be used by buyers to show home sellers that their offer on a home can be taken seriously. The pre-qualified amount isn’t yet a sure thing because it’s based solely on the application, without verification or closer examination by the lender.
Pre-Qualification vs. Pre-Approval
Pre-qualification differs from pre-approval. To get pre-approved for a mortgage, potential borrowers must provide a fully completed loan application, with all required documentation. Pre-approval is given once the lender has done the work of verifying borrowers’ financial information and doing a credit check.
The Benefits of Mortgage Pre-Qualification
Most real estate agents won't even show a property to people who haven’t been pre-qualified for a mortgage. When prospective buyers find a house they like, the first thing the seller wants to know is if the buyer can realistically afford the cost. When sellers aren’t sure buyers have sufficient resources, they sell to another buyer who does. So being able to prove to a seller that you can qualify for the right mortgage amount can make the difference between getting your dream home or losing out. This is where the process of pre-qualification can make buying a home easier.
And since pre-qualification also helps home buyers understand how much they can reasonably afford to pay for a home, they can stay within the right price range during their house hunting and are more likely to be approved for their mortgage, once they find their house.
What You Need to Get Pre-Qualified for a Mortgage
To get pre-qualified, a prospective home buyer will need to fill out a standard loan application and provide the following information:
- Borrower Information: These are the basics about the applicants, including current address, marital status and dependents, social security number, date of birth, and whether they currently own a home.
- Assets: Applications require a list of assets, so lenders can determine the source of the down payment and closing costs.
- Liabilities: Outstanding debts must be listed, including how much borrowers owe and to whom.
- Declarations: This section contains any additional questions about borrowers’ financial histories, including bankruptcy and judgments, if any exist.
At this stage, borrowers don’t need to provide property information, and lenders will not pull a credit report.
Get Pre-Qualified Today with Bethpage
Ready to take the first step toward buying your new home? Getting started is easy!
- Complete the contact form and click "Submit".
- We'll contact you within 24 hours.
Our mortgage experts are ready to guide you through the process and help you understand how much of a home loan you're qualified for.