What You Need To Get Prequalified For A Home Loan

If you’re planning to finance your home with a mortgage, the first step is to get pre-qualified. Mortgage pre-qualification is a written statement from a lender stating the loan amount you would qualify for according to that lender’s guidelines. The determination and loan amount are based on your self-reported income and credit information.

There’s no rule that says you must get pre-qualified before shopping for a home. However, a pre-qualification has its benefits. Getting pre-qualigied gives you clues about potential eligibility for a mortgage loan, as well as an idea of your home buying budget.

Mortgage lenders require borrowers to have at least an average credit score, money saved for a down payment and consistent employment, and they should not have had a recent foreclosure or bankruptcy. Learn more about getting pre-qualified for a mortgage.

Potential buyers need to show documentation to prove their assets and income, good credit, employment verification, among other documentation to be pre-approved for a mortgage. Serious homebuyers need to start the process in a lender's office, not at an open house.