Why Get Pre-Qualified?

1. Pre-qualification acts as a dry run of the loan application process. The mortgage lender will use details you provide about your credit, income, assets and debts to arrive at an estimate of how much mortgage you can afford. This is all done by word of mouth. The whole process may take only minutes or a few hours at most, and is free.

2. While a "pre-qual" is non-binding to the lender (because the information you provide has not been verified), it does serve as an indication to potential sellers of your general creditworthiness. A more conclusive letter would be a Pre-Approval, which necessitates a more thorogh investigation of your finances. A Pre-Approval is the bank's assurance that, barring any unforseen consequences, they would be willing to take the next step toward a commitment.

3. These days most sellers will NOT accept an offer without at least a pre-approval letter, so if you are serious about buying this is the first step towards getting you in your new home.