Get Prequalified for Your Home Loan—Before You Search!
You may think that buying a home starts with the home search, but there’s actually a very important step that comes first: loan prequalification.
What is Preapproval?
Loan preapproval is a preliminary review of your finances to determine your ability to borrow and estimate how much you’ll be able to borrow. It’s an important first step in buying a home for many reasons.
Why Does it Matter?
Before you start searching and touring for homes, it's important make sure you can qualify for a loan and to know how much loan you qualify for. Here are more reasons for getting preapproved before you search.
Low credit scores and too much debt can hurt your ability to borrow and drive up your interest rates and monthly costs. You may require mortgage insurance or a special type of loan, like the FHA loan.
Determining Price Range
Once you find out how much loan you actually qualify for, factoring in any obstacles that could drive up your monthly costs, you can determine how much home you will realistically be able to afford.
Customizing Your Search
Use your realistic price range to narrow your home search to target homes that meet your needs and your wants. Once you're prequalified, your realtor will be able to help you hone in on your search criteria.
Gaining a Competitive Edge
When you're prequalified, you become a more serious buyer. Sellers are much more likely to give you priority over unqualified buyers. Plus, it can gain you some negotiation power.
Do the bulk of your mortgage paperwork ahead of time and shorten the time between contract and close! Plus, when you're prequalified, you'll avoid any last-minute surprises, like higher-than expected costs.
If you’re thinking of buying a home in Raleigh or the Triangle, it’s time to get prequalified. Simply complete the form below and you’ll be well on your way to home ownership. Still have questions? Contact us today.