| Buying your first home can be a bit of a hassle, and | | | | that pre-qualifying does not mean pre-approval. When |
| can take months to accomplish. First time homebuyers, | | | | you pre-qualify you give the lender all the necessary |
| whether they are looking for New England, California, | | | | information on your financial situation to prove to them |
| or Kansas City real estate, usually go into the process | | | | that you will be able to make the monthly payments, |
| with a lot of questions. One of these questions is | | | | and it lets them know you are interested in a loan. |
| whether or not they should pre-qualify for a loan and | | | | However, the approval process for the loan is a |
| why. | | | | completely different process than pre-qualifying and |
| The answer to the above question is yes, it can be a | | | | whether or not the loan application is accepted will |
| smart move for the home buyer. Pre-qualifying for a | | | | depend on a separate set of variables. |
| loan gives you an idea of how much house you can | | | | If you are a first time home buyer pre-qualifying would |
| afford. This helps when deciding on a neighborhood, | | | | definitely be beneficial for you. It will help when deciding |
| square footage, etc. Pre-qualifying for a loan also gives | | | | on the home, when working with the seller, and it will |
| you a great tool when making an offer on the home. | | | | save you time when it comes time to actually get the |
| Showing the seller that you are pre-qualified tells them | | | | loan. Pre-qualifying shouldn't cost anything until the |
| that you are ready to buy the home as soon as | | | | actual loan is drawn up, so it can only benefit you in the |
| possible, and that you have a lender who is already | | | | long run. |
| interested in helping you get your loan. Keep in mind | | | | |