What is Pre-Qualification for Financing?
- Finding a home and buying a home in Northern Idaho are two very separate things. Buying a home starts with getting your financial house in order. Getting pre-qualified shows sellers that you are a buyer who can qualify for financing and it helps you establish a clear price range for buying a home.
- Pre-qualification is not a full mortgage approval, but a basic estimate of what you can afford in a home loan. Pre-qualification is sometimes confused with pre-approval, which is a more comprehensive analysis and commitment of a loan program for a buyer.
- Simplify your loan process and get pre-qualified for a home loan. Along with the down payment available to you, the loan amount will determine what price range will work for you. Pre-qualifying helps you identify and resolve any issues you may encounter in your loan application.
What about Getting a Mortgage?
A mortgage is the loan a potential homebuyer needs in order to make up the difference between the down payment and the purchase price of the home.
- There are a variety of mortgage programs available, with adjustable time periods and financing options. The process and the products can be complicated. It's a good idea to work with a knowledgeable mortgage professional that can advise and explain all of your options to you.
- It usually takes about 30 to 45 days to process a loan application. The actual time depends on how promptly the lender can get an appraisal of the property, a credit report, verification of employment and bank accounts.
- Most loans will also require a buyer to provide verification of income, assets, and long-term debt.