What is Mortgage Prequalification??
Simply put, getting prequalified for a mortgage means that you have a lender review your finances and give you a (soft) approval for a certain loan amount. During this process, the lender will collect some financial information from you (like income, assets, and debts) and let you know what loan options are available to you. They can also estimate your monthly payments based on different home prices, interest rates, and down payment amounts.
During the prequalification process, you'll find out:
- Exactly how much home or land you can afford.
- How much cash you'll need for the down payment.
- The minimum down payment required and advantages of higher down payments.
- What the bank feels you can afford for a monthly payment.
- What loan options are available to you.
How to Get Prequalified
Getting prequalified is actually easier than you'd think. All you need is your phone, a few minutes, and some basic financial information!
Get recommendations
Need a lender? Ask friends, relatives, or other people in the area you know who've recently bought homes. Your Realtor is another great person to ask for a recommendation. And it's always a good idea to check with your current banks or credit unions to see what they can offer you.
Make some calls
Got a list of potential lenders? It's time to make some calls! A ten-minute phone call is all it takes to learn more about your loan options, the rates and services offered by that particular lender, and what they'll need to get prequalified. The lender might even give you some estimates over the phone.
Submit paperwork
The lenders you speak with will likely require you to submit some paperwork so they can take a closer look at your finances and tell you exactly how much loan you qualify for. Note: this doesn't obligate you to work with any particular lender, and you can get prequalified by more than one lender at a time.
Where Do I Get Information on IRS Tax Publications?
The Internal Revenue Service publishes a number of real estate publications. They are listed by number:
521 "Moving Expenses"
523 "Selling Your Home"
534 "Depreciation"
541 "Tax Information on Partnerships"
551 "Basis of Assets"
555 "Federal Tax Information on Community Property"
561 "Determining the Value of Donated Property"
590 "Individual Retirement Arrangements"
908 "Bankruptcy and Other Dept Cancellation"
936 "Home Mortgage Interest Deduction"
Order by calling 1-800-TAX-FORM
I Help Buyers Prequalify for Mortgages Everyday
Feeling a little overwhelmed by the whole prequalification or mortgage process? I help new buyers find lenders and get prequalified for loans on a daily basis, so I'm ready and able to help any time! All you've got to do is give me a call... or fill out the form below to let me know the best way to contact you.
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