Should I Get Prequalified For My Mortgage Loan?
It doesn’t matter whether you’re a repeat or a first-time homebuyer at the Lake of the Ozarks – getting prequalified for a mortgage loan should be one of your very first steps towards buying a house in Osage Beach MO. You will need to work with a mortgage lender to officially get prequalified, but your real estate agents at the Lake of the Ozarks are here to help you prepare for the process with these quick tips. Once you’ve been prequalified, you can move on to the next step – preapproval.
A mortgage prequalification is a tool to help future homebuyers determine how much money they can borrow from the bank. Part of the process will involve evaluating your debt-to-income ratio, which is the amount of outstanding debt you currently owe compared to your income. It’s important to be aware that if you have too much existing debt, you may not be approved for a mortgage loan. Getting prequalified is not a commitment from the bank for the loan nor will it affect your credit score (although your credit will still play a role in your loan amount). Prequalification is simply an estimate on what size loan you may be able to receive.
Pre-approval is the next step after pre-qualification. Once you are prequalified, you can request an official letter stating what you can borrow. This letter tells your real estate agent that you are serious about buying a home. Pre-approval comes from the lender that takes your loan application and determines how much money you can borrow based on your debt to income ratio and your credit score. Unlike a prequalification, this process will inquire against your credit and should only be pursued if you are planning to purchase a home within a short amount of time - typically 90 days or less.
If you are getting a mortgage loan you will have to get prequalified at some point, and doing so before you begin shopping for homes offers several valuable benefits. Prequalified buyers look much more serious, for example, and sellers may be more likely to work with them. Also, knowing a rough estimate of how much you can borrow can help you determine how much house you can afford. Ultimately, prequalification is an important step on the road towards buying your dream home at the Lake of the Ozarks.
Our agents can help you find the perfect home and guide you through the process quickly and efficiently. Our team specializes in first-time homebuyers in the Lake of the Ozarks area and works together to go above and beyond our buyers' needs to get them the homes they deserve. Devine on Demand can help you find your dream home!