So you’re getting ready to buy a home and you want to take the right steps to ensure you get the home you want. What will it take to secure that home?
For the best shot at the home, you need a pre-qualified mortgage loan letter.
In this article, we walk you through the mortgage application process and how to get pre-qualified with CIS Home Loans.
What Does Pre-Qualify Mean?
The first step in securing a mortgage loan is pre-qualification. This is an informal process where general information is collected by a mortgage professional about your assets, income, and expenses. The information is used to estimate the loan amount you can afford and potential eligibility for approval.
This part of the application process gives you– the buyer insight into the price range you can afford and shows whether you’re eligible for a mortgage loan. There is no credit analysis nor does it bring you any closer to securing the loan, but it does show the potential lender your eligibility.
CIS Home Loans has a free pre-qualification survey that can provide you with a pre-qualification letter.
What You’ll Need for Pre-Qualification
Before you even apply for a mortgage, we recommend checking your credit score and credit reports.
By knowing what your credit health looks like beforehand, you’ll have a better idea what kinds of loans and interest rates you can qualify for. You’ll also have the opportunity to clean up your credit report before you apply so you can boost your credit score and lower potential mortgage rates. For tips to improve your credit score, check out our blog: How to Improve Your Credit Score to Lower Your Mortgage Rates.
Once you’ve become familiar with your credit and addressed any issues, you’re ready to apply for the mortgage loan and supply supporting documentation.
Here is your Pre-Qualification Checklist:
- Personal Information
- Phone Number
- Social Security Number
- Income Information
- Amount of Income
- Employer Name
- Length of employment
- Credit & Loan Information
- Permission to pull your credit information
- Whether or not you’re applying with a co-borrower
- Type of loan you’re interested in
Pre-qualification typically doesn’t take long – only hours, at most, a couple days.
Once you’re pre-qualified, you’ll receive a pre-qualification letter and be ready to find and apply for pre-approval of a loan program.
CIS Home Loans lets you apply for a home loan online, then we guide you through the loan process. Check out this article for more information on our home loan process and timeline.
Why You Need to Get Pre-Qualified
When you’re ready to make an offer on a home, you’ll be expected to provide documentation. A pre-qualification letter lets the seller, agent, and lender know you are serious and that you have both the credit and the income to back up your purchase. Pre-qualification also gives you an idea of what your loan arrangement will look like.
Remember, the housing market is competitive. Sellers prefer a pre-qualified buyer over a buyer who doesn’t have the official paperwork that proves they can close a deal.
Pre-Qualify with CIS Home Loans
You need to get pre-qualified before you can apply for a home loan. To get pre-qualified for a loan with CIS Home Loans, just fill out this form!