Pre-Qualification: Beginning Steps to Homeownership

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What Does it Mean to Be “Pre-Qualified” for a Mortgage?

Pre-qualification is receiving an estimate from a lender with details of what a borrower’s home loan would be including the loan program, loan amount, and payment needed prior to beginning their home search. 

 

Information Needed for Pre-Qualification:

Loan Product
Are you looking for a fixed rate or adjustable rate mortgage?  Find the best home loan available.

Purchase Price
What is the median cost of your dream home?  Not sure how much home you can afford?  Visit one of our home purchase calculators.  

Down Payment
Percentage of money the borrower(s) are willing to use towards the purchase of the home. 
5-20% of the total house cost is the recommended down payment amount to have available prior to purchasing the home.

Monthly Income
Household monthly gross income before taxes for all borrowers.

Monthly Debt Payments
Household monthly reoccurring debt obligations, including current house payment, auto loans, credit cards, and student loans.

Balance on All Credit Cards
Debts owed from credit cards from borrower(s).

State Property Located In
Include what state the home is located in for loan application purposes.

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What a Borrower Needs to Know Before Filing for Pre-Qualification

The more precise the borrower(s) can be the better.  Knowing their credit score and current debt-to-income ratio is important information to know prior to applying.  Understanding the budget for a future home loan will prepare any borrower for a conversation with a mortgage loan officer.

Being pre-qualified is different from a loan.  Pre-qualification helps determine the borrower(s) future mortgage loan amount and approximate payment with zero commitment to take out a loan.

Research the market and the potential lender.  Because purchasing a home is one of the largest investments a borrower will make, it’s a good idea to research home prices in the area the borrower is considering buying and look into local lenders reviews before scheduling an appointment.  Whatever the final dream home looks like, American Eagle Credit Union is ready to assist in making those dreams a reality.  Ready to Begin the Pre-Qualification Process?  Contact one of our experienced mortgage loan officers to get started in the home buying process.


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