How to Prequalify for a MortgageGetting Prequalified for a Mortgage
Frequent misunderstandings about the pre-qualification of mortgages
than prequalification arrangements. Frequently mistaken for a pre-approval for a mortgage, pre-approval is an estimation of how big a mortgage you can afford due to your current pecuniary condition over the past two years. "It' s important because it will help you limit your possibilities and concentrate on how much home you can really afford," said Erin Lantz, Zillow Mortgage Marketplace manager.
"between you and the lender." The prequalification phase is an important first stage for serious real estate purchasers, who are more likely to ignore the potential buyer. However, as credit policies have become stricter, it is important to know where you are before focusing on a McMansion that you simply can't affordable.
Lantz helped us to identify some of the frequent misunderstandings that first-time buyers usually have about pre-qualifications: It'?s the same as a credit. "For the first home buyers like to think that prequalifications and credits are one and the same, but they're not," Lantz said. "As soon as you're eligible for a credit, that's an obligation." No need to examine the lenders.
Prequalification is going to help diagnose your mortgage, so you'd do well to find a lender that puts you at ease, Lantz said. They are obliged to cooperate with the creditor who makes them available. "Only because you are choosing a creditor you want to work with does not mean that you have to use him to take out the loan," Lantz said.
The majority of creditors will try to motivate you to work with them on the mortgage, but under no circumstances should you be obliged to do so. For the first home buyers, it's always a good idea to be prepared for a pre-qualification, just like when you' re looking to secure a mortgage, Lantz said. Although they are not often obliged to provide documents, "the more accurate they can be, the more accurate the creditor can tell them what economies of scale they can afford".
"That' never okay," Lantz said. "I' m telling all first-time buyers to be honest and accurate." Failure to do so may compromise your creditworthiness and your chances of getting the mortgage (and the house). Explain to the lender everything they need to know, from any rent properties you have possessed to what is really looming on your mortgage reference.
"It is your aim to show that your overall economic situation has stayed constant over the last two years," said Lantz.