It is a good idea to be pre-qualified for a loan before you begin shopping for a home. Pre-qualification involves choosing a lender, providing financial information such as income and debts to the lender, and having your credit report available for review. The lender will then make an initial determination about how much money they will lend you. Pre-qualification has several advantages. For example, you will know what your maximum price range is. This will help you quickly eliminate homes based simply on price. Also, a seller may be more inclined to accept your offer because being pre-qualified gives some extra assurance that the financing contingency clause of the offer can be met. Some housing programs, such as HUD, even require buyers to be pre-qualified. For more information on pre-qualification, contact a real estate or financing professional.
