Many buyers ask us... Why do I need to pre-qualify?

Well, here are several reasons why it is worth your time to get pre-qualified:

1. When you get pre-qualified, your lender can tell you exactly how much you can afford to borrow.  They can also show you what your monthly payment will be & how much money you will need to bring to closing.  Many times, buyers don't realize the costs involved in borrowing money.  Buyers sometimes underestimate what is needed or over estimate what they can afford.  Also, by knowing what you can afford to borrow, it will help you to narrow down your home search and help you to avoid falling in love with a home that you can't comfortably afford.
2. When you get pre-qualified, your lender (with your permission) is able to pull & review your credit report for you.  It is important to know your credit score & to check it with your lender for accuracy.  Be sure you can verify everything on your credit report.  Also, if your credit score is low, your lender can offer you guidance in increasing your credit score.
3. If you can include a prequalification letter from your lender with your offer, the sellers will view you as a more serious buyer.  A seller is more likely to accept or counter offer rather than rejecting your offer if they know you're already pre-qualified.  This is even more important if you are in a multiple offer situation.  A seller would much rather work with a buyer who is pre-qualified than one who is not.
4. After you get prequalified, do not make any major purchases with credit or do not open new credit accounts.  This will change your credit score and could affect your "ratios."  Don't buy a new car.  Don't get a store credit card to get "10% off" on your purchases when shopping.  Any inquiry on your credit can lower your score. 

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