What does it mean when your real estate brokers asks if you are qualified or pre-approved for a home loan?
Getting a home loan can be cumbersome. Finding right loan product and lender can be confusing to first time buyers as well as to seasoned buyers. We want to help make getting and understanding home loans and buying a home in Maine a little easier.
Home Loan Pre-qualification
Getting prequalified is truly the first step when searching for a home. You supply basic financial information, such as your income, assets, and debts to a local loan officer. The lender then reviews the information you provided and will ask you a few questions. In a relatively short amount of time the lender will provide you with a preliminary estimate of the amount of home loan you qualify for. This would be your pre-qualification.
Home Loan Pre-Approval
Pre-approval involves a more in-depth look at your finances. This process is more time consuming but also brings you closer to determining your potential interest rate and monthly home loan payment. T Being pre-approved also puts you in a better position to purchase a home because it shows you have your finances in order. A Pre-Approval letter from your loan officer will help tell home sellers that they have a qualified buyer interested in their home.
Finding your loan
The best place to start is having an open conversation with a qualified loan officer who can assist you with choosing the right home loan for your goals and financial situation. If you're ready to explore home loans in Midcoast Maine or to get prequalified, please contact us. We'll help match you to a local lender that will fit your needs and personality.
Looking for more information on home loans? Learn about fixed rate loans vs. adjustable rate loans here.