What's a Pre-Qualification?

If you do not already know, being “pre-Qualified” is a great place to start when you are thinking about buying a home.

The “Pre-Qualification” is based on an informal conversation, where you discuss income, assets, credit card payments and other debts with a Mortgage Loan Officer. The outcome; a general idea of what you would be able to borrow, what your payments would be under certain interest rate and payment schedules, how much you would need to pay as a down payment towards your new home and what kind of information or documentation you would need to secure or obtain the loan(s) you are discussing.

What you need to know:

• This is not a conditional loan approval.

• Markets change and so do lenders.

• The accuracy of the “Pre-Qualification” depends on the experience of the Loan Officer and your ability to convey information

* Everytime a credit report is run, it will adversely affect your credit risk score.