Roberta Oswald
Roberta Oswald, Valley Property Sales & Management
Email: [email protected].com

Getting Pre-Qualified for Your Mortgage

by Roberta Oswald 08/04/2019

Potential home buyers should obtain a pre-qualification letter from their lenders to access a home loan. This letter communicates what the lender thinks about you being qualified for a mortgage up to a certain amount and is dependent on the data you gave about your assets, income, and expenses.

Pre-qualification is just the primary step, and it provides you with an idea of how much of a loan you will potentially qualify for. This process relies on consumer-submitted information.

Getting Pre-Qualified

Pre-qualification entails providing the lender with your overall financial picture, including your credit, debt, income, and assets. The lender evaluates everything and gives you an estimate of the amount you are expected to be able to borrow.

Pre-qualification can be conducted over the phone or via online, and there is no cost attached. It is usually a quick process, taking from one to three days to obtain a pre-qualification letter. Remember that loan pre-qualification does not include a review of your credit report or a detailed look at your ability to buy a home. Instead, it is only dependent on the data you provided to the lender. By extension, it doesn't mean much at all if you provide inaccurate information. 

The first step in the pre-qualification process allows you to talk with your lender about any needs or goals you might have regarding your mortgage. Then, your mortgage lender can tell your various mortgage options and discuss the type that might be the most suited for your needs.

Some brokers go the extra mile of requesting home buyers to have pre-qualification before working with them. The letter would signify that a lender has already started talking with the buyer. A properly-written pre-qualification letter clarifies that you are using a quality, legitimate lender who can be reached for verification and confirmation.

According to many real estate agents, in a highly competitive market, a pre-qualification letter might not be enough. This is a significant drawback in using and relying only on a pre-qualification letter for proof of ability to purchase a home. If you need to buy immediately or don't want to miss out on a great deal in a trending area, you may need to be pre-approved as well. Pre-approval is a more complicated process and can impact your credit score, so speak with your agent about which is the better option for your situation.

About the Author
Author

Roberta Oswald

 

A passionate polo player, aviatrix and fourth generation member of one of the oldest winery families in the Napa Valley, Roberta has lived in the Bay Area her entire life. She attended San Jose State University and graduated with a degree in Aeronautics and a Business minor before entering into the professional world. Dedicated to her community as well as her vocation, Roberta is the past President and member of the local Soroptimist International organization. She is also an active member of a number of local Chambers of Commerce. Because of her longtime residency and her civic involvement, Roberta has an acute awareness of the needs and wants of families in the area. She knows the schools and neighborhoods, as well as the services and benefits available. Roberta is a valuable information resource for those new to the area as well as those who are simply changing neighborhoods or looking for investment properties. Roberta has over eighteen years of experience in buying and selling real estate in the residential, investment and commercial markets. She started and operated two specialty businesses on the Peninsula prior to joining Up Valley Real Estate in 2003. Not content to just “get the job done”, she wants to exceed your expectations. Roberta believes in service with commitment. Utilizing the kind of knowledge that is obtained only through extensive life experience and an in-depth understanding of the area and local market, she works with you to provide the maximum results. During her accomplished career, Roberta has refined important skills in communication, negotiation, attention to detail and sound business practices, all of which are vital to the success of her real estate clients today.