Prequalifying for a mortgage does not mean you will automatically be entitled to a loan, but it can get your home hunt began on the ideal foot. When you prequalify for a mortgage, then you take a list of your own income, debts and assets and send them to your prospective creditors. This gives creditors the information they want to evaluate your program before you have a deadline and gives you an notion of what price range you can afford. It also shows lenders you are financially responsible enough to assess your finances before shopping for a home and may speed things along when you make an application for real.
Visit your lender branch or site and ask for a prequalification form. For instance, Bank of America’s site provides an internet prequalification form it asserts it is possible to fill out in under 10 minutes.
Fill in the shape. Prequalification types vary, but creditors will often ask for your address, purpose of your loan, purchase time period, amount you plan to borrow and the type of property you need to purchase. You will also need to offer a history of your employment and evidence of income.
Authorize your lender to perform a credit rating. The Fair Credit Reporting Act requires creditors to ask customers to provide a credit report authorization and release before running a credit rating.
File your application. Online applications may get a response in minutes. Other programs may take weeks or days to get a response.
