If you’re about to begin your new home search, you may want to consider getting pre-qualified—or even pre-approved—for a home loan. Although pre-qualification isn’t a mandatory step on your journey to homeownership, it does offer several benefits. Following are just a few advantages of pre-qualifying for a mortgage before you begin your house hunt.
It helps to establish a budget.
Not sure how much home you can afford? Getting pre-qualified for a home loan is a wonderful way to find out!
Not to be confused with pre-approval—a more involved process that involves a mortgage application, financial background check and lender commitment—a mortgage pre-qualification is simply an evaluation to determine whether or not you qualify for a loan and an estimate of how much the lender may be willing to offer you based on information you provide the lender. After you have a ballpark figure, you can set your budget and narrow down your home search parameters.
It saves time.
Once you have a pretty accurate idea of your price range, you won’t waste time touring communities and homes that you simply can’t afford. In addition, because your lender has already done some of the groundwork, you might enjoy a shorter mortgage approval period and/or avoid any last-minute delays due to approval issues.
It allows you to plan ahead.
It can be easy to focus on home price and overlook any other costs associated with homeownership—especially if you’re a first-time homebuyer. But learning the maximum amount you can borrow from a lender through pre-qualification may help you plan ahead and better budget for extra expenses, such as utilities and home furnishings.
It provides peace of mind.
Getting pre-qualified for a mortgage can help ease worries associated with financing and give buyers a sense of control over their new home search. If you know that you will be able to secure a mortgage and have a good approximation of the loan amount, you will be free to concentrate on finding the perfect home in your price range.
Visit RichmondAmerican.com or call 800-500-7060 to learn more about communities, floor plans and move-in ready homes in your area—and keep following our blog for additional homebuying resources. Happy house hunting!