Is it a good idea to pre-qualify before house hunting?

Absolutely! Even if you haven't so much as picked out houses to visit yet, it's important to see your mortgage professional first. Why? What can I do for you if you haven't negotiated a price, and don't know how much you want to borrow?

When I pre-qualify you, I help you determine how much of a monthly mortgage payment you can afford, and how much I can loan you. I do this by considering your income and debts, your employment and residence situations, your available funds for down payment, required reserves, and some other things. It's short and to the point, and I keep the paperwork to a minimum!

Once you qualify, I issue you a Pre-Qualification Letter (Commonly called a "pre-qual"), which says that I am working with you to find the best loan to meet your needs and that I'm confident you'll qualify for the loan at a designated amount.

When you find a house that catches your eye, and you decide to make an offer, being pre-qualified for a mortgage will do a couple of things. First, it lets you know how much you can offer. Your real estate agent will help you decide on an appropriate offer, but being pre-qualified gives you the confidence to know you can follow through.

More importantly, to a home seller, your being pre-qualified is like walking into their house with the cash in hand! They won't have to wonder if you're an unqualified buyer. You have the buying power to make the deal happen!