It can be exciting to explore open houses or wander around the web for properties on the market. You’re probably dreaming of paint colors or new furniture with the purchase of your perfect home.
But don’t get ahead of yourself!
The process to buy a house should actually start a mortgage lender . . . by getting prequalified for a mortgage loan.
Prequalifying for a mortgage means that we’ve checked your credit report, determined your credit score, and considered the information that we’d need to help you to obtain a loan.
Getting prequalified can give you a good idea of what loan type and amount you may be able to qualify for, so you know what price range is a fit for your budget and life goals.
This helps you avoid a common mistake that we often see. Often, people assume that when a friend or family member get certain loan terms with a home of similar price, they’ll receive those same loan terms. But that’s not usually the case. Why?
Interest rates fluctuate, even daily, and credit scores lead to mortgage loan terms that will vary from person to person. Getting a loan prequalification, however, allows you time to take steps that might increase your personal credit score or fix any errors that show up on your credit report.
Be sure to keep in mind that getting prequalified is not the same thing as getting preapproved for a mortgage. Prequalifying is the first step, and preapproval comes next. Preapproval is a conditional commitment to grant you the mortgage loan.
With a prequalification, you have a general idea of what your home budget should be, so you can begin shopping for homes knowing what you can afford. And once you find that home, you can rest more assured knowing you have already started the process to secure financing.
Contact INB’s mortgage lending team today or start the process of prequalifying for your dream home.