First Time Homebuyer? Here Is How To Pre-Qualify
If you’re a first-time homebuyer, you may feel overwhelmed with all that you need to do. There are first-time homebuyer programs to learn about, different types of loans to search for, and many houses on the market that you’ll want to visit and inspect. Luckily, you can do a few things to simplify the buying process. One of them is to pre-qualify for a first-time homebuyer loan before you start exploring potential homes. Below, we’ll explain the pre-qualification process, its benefits, and how to get started.
What Is Pre-Qualification?
Pre-qualification is a step you can go through when applying for a home loan that helps you understand your eligibility to buy a home. This step in the home financing process is typically free, so you won’t have to worry about committing to a major financial decision right away.
Unlike the preapproval process, you typically don’t need to submit any financial documents to the lender in order to pre-qualify. It is a fairly easy process; you just need to answer a few simple questions. Then, the home loan lender can provide you with a rough estimate of the maximum amount you can borrow for your next home.
Benefits of Pre-Qualification
The most significant benefit of pre-qualification is that it helps you know what types of homes you can afford. You want to avoid going through the trouble of finding the perfect home on the market only to discover that you’re not eligible to take out a loan large enough to afford it. By spending a few minutes now to get pre-qualified, you can determine a realistic budget for your next home and narrow your search to homes that fit this budget.
How First-Time Homebuyers Can Pre-Qualify
The pre-qualification process may be unfamiliar to first-time homebuyers, but you can rest assured that it is straightforward. The first thing you’ll want to do is gather basic financial information about yourself, such as your income and credit score. After that, you can contact a local Houston lender and tell them you want to apply for pre-qualification. They will then ask you questions, either over the phone or through an online form, that will only take a few minutes to complete.
Once you’re done submitting your answers, you’ll receive the loan estimate from the home loan lender. Keep in mind that this estimate from the lender isn’t binding. The lender will need to conduct a more thorough review of your finances before determining an exact number of how much you can borrow. However, the pre-qualification process should give you a good estimate of where the final amount will land.
Learn More at Supreme Lending in Houston
If you’re interested in pre-qualifying for a home loan in the Houston area, Supreme Lending is here to help. We specialize in supporting first-time homebuyers. We can teach you about first-time homebuyer grants in Houston and any city of Houston down payment assistance programs you may be eligible for. To learn more, please contact us today.