Get Prequalified for a Mortgage

Front 11Getting prequalified for a mortgage is a critical step in buying a home.  Hopefully you have already tracked down a free copy of your three credit reports and have checked it for errors. Now you need to get prequalified for a mortgage loan so you know how much home you can afford.

Pre-qualification is a process whereby a loan officer takes information from a borrower and makes a tentative assessment of how much the lending institution is willing to lend them. Wikipedia

Getting prequalified for a mortgage loan is not the big hassle it used to be.  There are some documents you will need to round up, mainly tax returns, w-2s, 1099s etc and then the loan officer does the rest.  Most loan officers now have online applications.

The borrower is typically asked for their social security number or other identifier, together with proof of their employment, income and assets, which is weighed against the monthly payments being made on their current debts. This provides a general picture of their credit worthiness. Based on this initial information, a maximum loan amount will be determined according to a standard Debt-to-income ratio. Final approval of the loan will require a credit report from a credit bureau. Wikipedia

After you’ve pulled everything together, make an appointment with a mortgage lender to find out how much money you are eligible to borrow when you purchase a new home.  Once you are prequalified for a home loan, you will have a better idea of which homes will fit into your purchasing budget.
Sally’s Hint for Home Buyers: Try to buy less home than the max you prequalified for a mortgage with the lender.  Leave room for unexpected expenses along the way.  You will sleep better at night, I promise!

NEED AN Atlanta MORTGAGE LENDER: Call Sally for Advice 404-229-2995. I work with mortgage lenders every day.  Some do what they say they are going to do, some do not.

DO NOT DEAL WITH AN INTERNET LENDER UNLESS YOU ARE RE-FINANCING YOUR HOME!  Period.  Internet lenders miss deadlines and make life miserable for borrowers who are purchasing a home.  Trust me on this.  They may promise a quarter or half point less on your loan but they NEVER DELIVER.  Internet lenders will yank you around and you will be sitting at the closing table before you figure it out.  Then you have no real choice.  You either accept their terms or walk away from the great house deal you negotiated.