Friday, April 14, 2023 / by Blair Hayes
Now is the time to get prequalified for a loan! This is a necessary step to move on with the rest of the home buying process. In fact, most sellers will not accept an offer from a buyer that does not include a preapproval letter. Don’t worry, it’s not as difficult to complete an application as you may think.
Most prequalification applications can be completed in 15 minutes or less. You will be led through a series of prompts for you to answer to the best of your ability. These questions may include your gross annual income, monthly debts you pay, such as a car payment or student loans, job title and length of time in position, and assets, such as how much money you have in the bank. (If you go back to our blog post about the first step of the home buying process, you’ll see why having financial documents easily accessible will help you out on this step). You can apply as an individual or together if someone else is going in on the loan with you.
Once you’ve completed the application, your lender will process it as soon as they can and determine what loan type best fits your needs and how much you can afford. If you qualify for a mortgage, your lender will call you with the good news and explain the details of your loan and walk you through the next steps.
Something that is very important at this time is that you do not do anything that could affect your credit. Do not open or close any credit cards or lines of credit, do not apply for any other types of loans, such as a car loan, and while this one may sound counterintuitive, do not pay off large amounts of debt. These are all things that could negatively impact your credit causing your loan amount to decrease, your interest rate to increase or cause you to become ineligible for a mortgage altogether.
I hope this helped answer some of the questions you have about getting prequalified. If you still have questions, do not hesitate to reach out to mortgage loan officer Valerie Watson by phone at (806) 729-2628 or by email at email@example.com.
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Written by Blair Hayes, REALTOR®