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Pre-qualify before you start your home search??

Last Post 13 Feb 2008 04:30 PM by Brandon. 4 Replies.

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Michael J.
Posts:4

25 Jan 2008 04:01 PM
So I am slowly starting the search for my new home and some friends are advising me to get a mortgage prequalification. I don't really see the reason for that - I know I have excellent credit and there are enough online calculators to see how much I can afford. Am I missing something hidden benefit of prequalification? Michael

Douglas Ingram
Posts:26

26 Jan 2008 09:18 PM
Hey Michael, great question. There are different schools of thought on this. But the primary benefit for seeking a pre-qualification prior to starting your search is that it will lend additional clout to your home search efforts. Due to the market melt-down many more people are unable to qualify for the more stringent mortgage standards. Because of this, sellers and realtors alike are somewhat suspect when beginning a transaction unless they know they have a true qualified buyer. In short, by having a pre-qualification ahead of time you can enter into a potential purchase situation quickly and confidently and also use this pre-qualification as potential leverage to drive a better bargain for yourself. Hope this helps and feel free to send me an item back if I need to clarify more.

Mark Allen
Posts:1

28 Jan 2008 01:43 PM
Michael, My name is Mark Allen and I handle a good bit of financing for Nestbrokers. It sounds as if you are very likely a savvy buyer with some depth of understanding of the finance side of things but I would like to offer my services should you be interested in getting formally pre-qualified or would just like to discuss the different financing options. Doug is correct that the current market has made getting approved for a home loan a bit more challenging but, more importantly, the type of available financing options are changing daily and getting pre-qualified, or at least discussing the different structuring options available, prior to the home search could be very advantageous and ensure you are optimally focusing your search from the start. Please feel free to contact me directly at 404-213-1236 should you be interested in discussing your situation in more detail or if there any other questions that I might be able to assist you with. Regards, Mark

Michael J.
Posts:4

28 Jan 2008 03:53 PM
Makes sense that having a letter in my hand can give me more leverage. Would you recommend looking for a mortgage broker or going to lets say Bank of America? Michael

Brandon
Posts:3

13 Feb 2008 04:30 PM
Michael, I would recommend contacting one of each since there are pros and cons to both. I have had good and bad experiences with both in my years as a real estate broker so I recommend contacting one of each when searching for financing. I am also a firm believer in competition when looking for financing for a home. Some lenders will work more aggressively to find a better rate or lower their fees if they know there is competition working for your business.

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