One of the most important steps in the sales process is getting pre-qualified for a home loan. Working with a qualified First Security Bank Mortgage Lender before you start searching for your new home will help ensure the home buying process starts out on the right foot.
Here are 8 reasons why getting pre-qualified is one of the most important elements of the home buying process.
1) Know how much home you can afford – Nothing stings as much as finding and falling in love with that “dream home” only to realize it exceeds your monthly budget. Being pre-qualified for a home loan gives you a clear snapshot of how much home you can afford.
2) Sellers want to work with “serious” buyers – Home sellers want to work with individuals who are pre-qualified. It shows that you have the resources available to purchase their home and have already done the initial work in the home loan process.
3) Your Realtor will appreciate you – Your Realtor works on commission and being pre-qualified tells them that you are a serious buyer and well worth their investment of time and energy in working to find you your new home.
4) Being pre-qualified allows more loan options – At the time of getting pre-qualified, a lender will be able to look at different loan options and find the one that’s right for you.
5) Helps you stand out from other buyers – Individuals who have been pre-qualified will often be a more attractive buyer than individuals who are not pre-qualified.
6) Truly knowing your monthly payments – The price of the home is one thing but realizing that there can be taxes, insurance, and at times mortgage insurance included in the monthly mortgage payment can increase the payment amount beyond your monthly budget.
7) Various sources of income have an impact – Not all income sources can be deemed acceptable for qualifying for a loan. Check with your lender to ensure that your monthly income can be used to qualify.
8) Don’t forget the down payment – It is highly likely that you will need a down payment to qualify for the purchase of your home loan. At the time of pre-qualifying with your lender, verify that your source of down payment is acceptable. There are down payment assistance programs that can help with those who do not have the down payment needed.
For more information about pre-qualifying for a home loan as well as down payment assistance options, please contact our First Security Bank Mortgage Lending team here.