Getting Prequalified

Before you start serious home shopping, I highly recommend that you get pre-qualified for a mortgage (cash buyers can skip this section). When you put in an offer, sellers will expect a pre-qualification letter or form that states that you have spoken to a lender and given the information your provided is true and complete, you are pre-qualified for a a loan in the amount specified.

I’ve had some buyers wait to get pre-qualified until they find something they like. There are 2 reasons NOT to do this, and both reasons are based on the ample experience I’ve had in recent months:

What you think is true about the lending environment may not be. I’ve had buyers with high incomes not qualify because they own their own business, but the business is new. I’ve had new home buyers that were very surprised to hear they had a low credit score. In this case, it’s better to pre-qualify up front to avoid disappointing surprises.

You may find something you like that disappears while you get pre-qualified. Some bank-owned properties sell VERY quickly so you have to be ready.

If you don’t have a lender you’ve worked with in the past, I’d be happy to share the names of several brokers I’ve worked with that gotten the job done for me in this tough lending environment.

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