Have you been pre-qualified?
Pre-qualified for…what exactly? In our case, real estate, we’re referring to being pre-qualified (or pre-approved) for financing assistance. In most cases people find themselves ready to find a property to settle in and make a home, but don’t necessarily have the money readily available for a purchase.
If you’re in need of such financial assistance, the first thing you should do when starting your real estate search is meet with an agent or bank. It’s not tough to get the process started. You’ll simply fill out a pre-qualification form – a quick credit application. They will ask you for basic background information, employment history, and some banking information. From this, the potential bank lender will be able to pull up any debt collections you may have and your credit score.
Credit scores range from 200 to above 800. Generally scores below 620 are considered risky – 720 and over are fantastic.
By doing this the lender will be able to tell you where you are, so to speak. They’ll let you know what you qualify for – what exactly you can afford to go look at, so you’re not browsing for that dream home out of your league. Or, if you don’t qualify, the bank will be able to tell you how far out you may be, and tell you the best ways to get yourself caught up so you can be on your way.
There are many different types of loans that banks are offering like Conventional, VA, FHA, and others depending on your area. All of these have different stipulations so make sure the loan you’re going for is appropriate.
So if you’re ready to see how much home you can afford then talk to an agent today! We’re here to help!