Getting qualified before you apply for a loan can help you
understand how much you can borrow.
When buying a house, you may get pre-qualified or pre-approved. You
can typically get pre-qualified over the phone or on the Internet in a
few minutes. A pre-qualification is not as beneficial as a
pre-approval where you have to go through a more rigorous process
which includes verification of your credit, income, assets and
liabilities. It is highly recommended that you get pre-approved before
you start looking for a house. This will help you:
- Find out the maximum house you can buy, so you don't waste time
looking for properties you can not afford.
- Puts you in a stronger position when you are negotiating with
the seller, because the seller knows that your loan is already
approved.
- Helps you close quickly, since your loan is already approved.
