The Home Buying Process
Step 3 Of 6
Get Prequalified
Getting Pre-Approved
To get prequalified, you'll need to complete an application. The lender will run a report on your credit and review the income and assets you stated on your application. If you qualify, you'll receive a prequalification letter for the amount you requested or the amount the lender is willing to loan. The letter helps you determine how much house you can afford. In other words, it defines the price range you should stay in as you look for your new home.
When you find the home you want, present the prequalification letter to the seller, showing them that not only are you serious about buying their house, you've already been prequalified for financing. It can make the difference between getting the house you want and watching another bidder step in and snatch that house away. Prequalification letters are good for 90 days.
