The Importance of Pre-Qualification for a St. Augustine home

The best way to hop on the road to home ownership is to first get pre-qualified by a lender or mortgage broker. Getting pre-qualified for your St. Augustine home, besides being the first step in the mortgage application process, benefits all parties involved: the buyer. the seller, and your real estate agent.

Pre-Qualification Paves The Way to Home Ownership

Pre-qualification allows you to gain insight on what St. Augustine real estate you can afford. Besides your income, your lender will consider your debt and your credit history, among other things.  All of these variables play an important role when your lender decides what you can afford to pay each month for your mortgage.

Keep in mind, however, that you may want to be conservative when considering the amount offered by the lender. For example, the lender may feel that you can afford a $200,000 mortgage, but you may want to choose a house slightly lower in cost to account for furnishing, repairing and maintaining your home.

Pre-Qualification Gives your Realtor a Place to Start

Getting pre-qualified gives your realtor the information he or she needs to begin finding your dream home. It makes no sense to spend weeks searching for a home for $200,000, only to find out you were only approved for a $150,000 mortgage. Taking the time to get prequalified narrows down your search and allows your realtor to show you St. Augustine homes in your price range.

Pre-Qualification Gives You Bargaining Strength

Getting pre-qualified shows sellers that the buyer is serious about home ownership and that they have taken the steps necessary to begin the loan process. It also puts you in a better position during the bargaining process, especially if there are multiple offers on the table.

For example, if you put in an offer and are pre-qualified, and another individual also puts in an offer, and is not pre-qualified, chances are that your seller will take your offer more seriously. And if both offers are similar, sellers will usually accept an offer from a pre-qualified buyer over a buyer who is not pre-qualified.

Doing your homework and taking the time to get a clear understanding of what you can afford and, most importantly, what you are willing to spend, will facilitate the home buying process and make it a more enjoyable one.

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