The Importance of Pre-qualification For Your Home Loan

Buying a home, especially your first home, is one of the most significant events of your life.  Your life is about to change for the better. It is our honor to assist you with this positive life changing event.

The First Step is Pre-Qualification.

Collect your financial information, paystubs, tax returns and account statements.  This will save time and increase the accuracy of the pre-qualification over working with estimates.  We will guide you through the numbers and information we need.  Then your pre-qualification will be complete shortly after. 

Even if your credit is excellent and you are sure that you are in your range of affordability, pre-qualification is an important step not only to help you with the ability to get a mortgage, but also you will receive information to help you with the financial decision of buying the home.  Your pre-qualification will include discussions about loan programs and related items that are of interest to you.

You may have a lot of questions about credit ratings or are concerned that you are not going to get approved.  Do not worry.  Many concerns can be overcome and in the worst case scenario if you do not prequalify, we can advise you on how to get pre-qualified in the future.

How much can you afford?

There are two answers to this question:  One is the loan amount we determine that you can qualify for, the other is what amount suits your needs without jeopardizing your quality of life.  Making sacrifices like giving up on dinners out or a new car are perfectly normal, but a monthly payment that you must strain to meet will probably diminish your home-ownership experience.  A rule of thumb I like is: Your total monthly mortgage payment including property taxes and homeowner’s insurance escrow should not exceed one third of your combined gross income.

Is Your Financing Secure?  Get Pre-qualified by a reputable lender.

A pre-qualification is only as good as the lender that stands behind it and the loan officer who issued it.  This is no time to cut corners!  Dominion Mortgage will guide you through the steps and complete them properly.  Pre-qualifications are FREE at Dominion Mortgage.

Best Wishes with Your New Home Buying Experience.

-Daniel D. Thierry, CRMS