One of the things that you may have been hearing about a lot if you have been looking into real estate and the home buying process is the importance of getting prequalified ahead of time. This article will educate you on the prequalification process and things that you should know about it.
Why should prequalification be your first step?
The first real step you take toward buying a home should be getting that prequalification from a lender. This is what will help you to know what types of homes you should be focusing on, because you will know what type of price range you will be shopping in. If you are getting your hopes set on a home that's going to end up being much more than you would be able to qualify for, then this will lead to some serious disappointment.
How does prequalification help you?
Along with giving you a heads up on the price range that you will want to be looking in, getting prequalified also helps you by presenting you as a buyer who is seriously looking for a home to purchase. In real estate, there are a lot of people who like to feel things out and look at houses on the market, with no real interest of buying at that point in time. This can be frustrating for agents and sellers who take time out of their day to show houses to people who are what can best be described as 'lookie-loos'. Knowing that you have gone through the process already to take this step will cause all involved to take you seriously.
Going through this first step in the home-buying process will also give you a bit of a jump when it comes to having everything together and starting the paperwork with a lender. They will need to gather your income information and other information from you that they will then use in order to determine whether or not they would be able to offer you a loan, as well as the amount that loan would be for if you are in a good position for qualifying. Later on in the home buying steps, when it comes time for you to go through the actual approval process, it will go easier for everyone involved, since the lender will already have much of your information that they will need to put the loan through.