Why Getting Prequalified is the Smart First Step Before Buying a Home

Ready to buy a home? Before you start imagining where to put the couch or pick out paint colors, there’s one key step you can’t skip: getting prequalified for a loan. But what does that mean, and why is it so important? Let’s break it down!

What Does Getting Prequalified Mean?

Getting prequalified just means a lender takes a quick look at your financial info to give you an idea of how much they might be willing to lend you for a home. It’s not a guarantee, but it’s a solid starting point for figuring out your budget.

Steps to Get Prequalified:

1. Gather Your Info
   You’ll need to know your income, debts, credit score, and savings. Having this ready makes the process faster.
2. Contact a Lender
   Reach out to a bank or online lender. Many lenders let you fill out forms online, so it’s easy to get started.
3. Answer a Few Questions
   The lender will ask about your job, income, and debts to estimate how much they’re willing to lend you.
4. Get Your Prequalification Letter
   If everything checks out, you’ll get a prequalification letter, which tells you how much you could borrow.

Why is Prequalification Important?

Know Your Budget
Prequalification gives you a clear price range for homes, so you’re not wasting time looking at houses you can’t afford.

Realtors can begin to work with you!

This is the fun part, once you have this in hand a Real Estate Agent is able to start working with you! Happy Shopping!

Stand Out to Sellers
Being prequalified shows sellers you’re a serious buyer, making your offer stronger.

Speed Up the Process
When you find the right home, having your prequalification letter ready means you can move fast.

Get a Reality Check
If the lender spots issues with your finances, you’ll have time to fix them before you start house hunting.

Final Thoughts

Getting prequalified is one of the best ways to start your home-buying journey. It helps you know what you can afford, shows sellers you mean business, and speeds up the process when you find the perfect home.

Got questions? Ask your local real estate expert,
Sarah Luzi, Designated Broker
Tyche Real Estate
480-227-3696