How to Get Prequalified for a Home Loan
No matter how much research you’ve done to figure out how much mortgage you can afford, ultimately the decision isn’t up to you-it’s up to your lender.
That’s where prequalification comes in. It typically only requires you to fill out a quick application or have a short phone call with a mortgage lender, and can both jump-start your mortgage loan and give you a price range to start house shopping in. It’s important to understand, however, that prequalification is only a prescreening, and doesn’t mean you’ll ultimately be approved for a loan.
What Is Prequalification?
Prequalification is designed to help lenders assess whether you’re a good potential applicant for a mortgage loan, as well as how much you might qualify to borrow. Prequalification is typically free of charge, and doesn’t oblige you to move forward in the loan application process.
- Your full name
- Contact details
- Income
- Debts
- The ZIP code where you hope to buy a home
The lender will then do a quick check of your credit report, known as a “soft inquiry.” Soft inquiries don’t impact your credit score.
Based on this information, the lender will give you a ballpark figure of how much you can borrow and how qualified you are to take out a mortgage loan in your current financial scenario. Continue reading How to Get Prequalified for a Home Loan