Does it Help to be Pre-Qualified by a Lender?
The pre-qualification process can be completed fairly quickly, as it requires less information than getting preapproved. A pre-qualification is helpful as it allows you to see the lender’s opinion on the maximum amount of real estate you can qualify for. However, it’s important to note that sellers will usually go with the buyer who is preapproved over one with a pre-qualification letter.
Get Pre-Approved by a Lender
Going the extra mile to get a pre-approval letter comes with several benefits, such as knowing the exact amount of real estate you can afford. When the time comes to put in an offer on your dream home, you will be better positioned than the other buyers who are not pre-approved. Additionally, it is more efficient to be pre-approved as it will reduce the amount of time it takes your lender to fund your
loan. Be prepared to provide comprehensive documentation, which the lender may independently verify, including but not limited to:
- Job and career status
- Monthly debt payments
- Total assets and debts
- Income
- Cash available
