First of all a borrower can find a home they can afford. Real estate professionals and Mortgage lenders frequently promote pre-qualifying for a mortgage as the best route for prospective homeowner. Pre-qualifying establishes how much you can borrow and the price range of homes you can afford to buy. Knowing the loan limits helps to focus the search for a new home. This helps to avoid wasted time looking at homes that are beyond the borrower’s price range. Alternatively, it may open the doors of homes that were not originally contemplated. Many time borrowers are pleasantly surprised that they qualify for more than they expected.
A borrower can streamline purchasing process by pre-qualifying for a loan. A borrower can strengthen their buying position through pre-qualification. A mortgage professional can pre-qualify you for a home loan before you start looking at homes. They can help determine what type of home loan best suits the borrower’s situation and describe the features and benefits associated with various mortgage options. Borrowers can then use affordability calculator tools to get an idea of how much they can afford, but having a lender formally pre-qualify you for a mortgage loan can give you a "leg up" in the home buying process. Many Realtors insist on a pre-qualification before beginning the shopping process. Realtors can spend a great deal of time helping borrowers find the home of their dreams and feel more comfortable assisting when the borrower is prequalified.
Prequalification establishes affordability. By pre-qualifying for a mortgage before a borrower starts shopping for a new home, the borrower can focus their efforts on houses that you can genuinely afford to buy. good Mortgage Broker calculate exactly a borrower can afford. Also a prequalification letter from a reputable lender can provide leverage with sellers.
Prequalifying for a home loan can motivate a seller to accept the borrowers offer. Sellers entertaining multiple offers may pay more attention to offers submitted by prequalified buyers. The sellers know that these buyers have taken the time to shop for mortgage financing and that the sale may close faster.
Prequalifying can save time and maybe money. Once a borrower is prequalified, they know which homes they can afford and won’t waste time viewing homes that are out of their price range. Pre-qualified buyers can make an offer with reasonable certainty that they can get the mortgage financing they need. The lender has already done some of the preliminary work; this can help prevent last minute delays due to mortgage approval issues.
Pre-qualifying can help a borrower plan for extra costs. If the borrower is a first time home buyer, it is easy to overlook additional costs of home ownership. By prequalifying for your mortgage, the borrower will have an idea of what your mortgage payments will be and can plan for home maintenance and repairs, lawn care, and additional utility costs. The amount the borrower prequalifies for is the maximum mortgage amount they can borrow. The borrower can consider homes requiring a lower mortgage and budget to allow for extra costs associated with owning a home.
Prequalifying for a mortgage may improve the borrower’s negotiating power. Borrowers may need to make a counter offer when buying a home. Sellers may be more flexible when considering terms of a borrower’s offer or counter offer as a prequalified buyer.
Prequalification can help to streamline the closing process. Prequalified buyers have established a relationship with a mortgage lender and know what to expect in terms of qualifying for a mortgage. Although prequalifying doesn't eliminate the possibility of delays before closing, it can reduce the possibility of "surprises" involving your ability to get the mortgage you need.
Homefront Mortgages is a full service mortgage broker and has been severing Summerville South Carolina residents for over 8 years. Borrowers can feel comfortable when they receive a prequalification from Homefront Mortgages that they are in good hands.
Contact Homefront Mortgages today for a free consultation at (843) 261-6181(843) 261-6181