What Is Pre-Qualification

Prequalification is a lot less formal than it sounds. The term refers to the idea that you have sat down with a professional and discussed financing options for a particular home or a range of home prices. Often the issue is not whether you can qualify for the loan, but what you can realistically afford.

Before you start shopping for a home you should meet with a mortgage banker so you can determine how much you'll be spending on your monthly mortgage obligation as well as what you are using for a down payment. Looking at homes you can't afford is a huge mistake and should always be avoided. You also do not want to pass up any homes that you can afford but think are out of your reach. Financial strategy fits in here, and it is the key to determining the best scenario for you.

Prequalification also gives you some negotiation power when presenting an offer. Sellers inherently want to know that you are a realistic buyer and have resources for closing an escrow. When you are ready to make an offer on a home I can provide a "pre-qualification letter" to your realtor.

To find out more information about pre-qualification, please call 310-867-3579 or visit the contact page.

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