Prequalified for a home loan. What does that really mean?
Prequalified for a home loan means that the borrower has actually spoken to a loan officer either in person or over the phone and based on the information a borrower has given to the loan officer.
Getting prequalified for a home loan is the first step in the mortgage process, and it’s generally fairly simple. It’s also the first step when thinking of purchasing a home. This gives you a guide as to what price range you should be looking at online or with a Realtor. The Borrower supplies a loan officer with your overall financial picture, including your debt, income and assets. After evaluating this information, the loan officer can give you an idea of the mortgage amount for which you qualify. Pre-qualifing for a home loan can be done over the phone or on the internet, and there is usually no cost involved. Prequalified for a home loan does not include an analysis of the borrowers credit report or an in-depth look at your ability to purchase a home.
Getting prequalified for a home loan allows you to discuss any goals or needs you may have regarding your home loan. At this point, a bank or mortgage company can explain your various mortgage options and recommend the type that might be best suited to your situation.
Because it’s a quick procedure, and based only on the information you provide to the loan officer, your prequalified for a home loan amount is not a sure thing; it’s just the amount for which you might expect to be approved. For this reason, a prequalified buyer doesn’t carry the same weight as a preapproved buyer who has been more thoroughly investigated
To Get Prequalified For A Home Loan