Most real estate agents and lenders recommend that home buyers get prequalified with a lender before selecting a home to purchase. This way you will have the best information about the price you have chosen.
- With prequalification, you can determine which loan program best fits your needs and which programs you qualify for.
- You will know exactly how much you are qualified for.
- Your monthly payment will be set. This will allow you to budget your money before making this large investment.
- It shows you what the down payment and closing costs will be.
- If you are a first time buyer, you may be able to qualify for a special first time buyer program which may allow you to afford more home for your money.
- Being prequalified will allow you to move quickly when you find a home you want to purchase. If you find a home, you risk the chance of losing it to another buyer if you still have to take the time to get prequalified by a lender.
- And remember, prequalification does not require any obligation on the buyer’s part.