What Does Pre-qualifying for a Home Loan Mean?

Get Pre-qualified for a Home Loan

If you're looking to move into a new home, there is a lot more that goes into house hunting than simply finding a home you like. The finances involved in house hunting can get quite confusing, especially if you're a first-time prospective buyer. ;Patriot Title Agency in Ohio ;can help you start the process ;by helping you understand what it means to pre-qualify for a home loan.

The First Step in the Process

Getting pre-qualified is oftentimes confused with getting pre-approved for a home loan. Don't get confused, these are two separate parts of the mortgage process. Getting pre-qualified is the first step you need to take. Getting pre-qualified will give you an estimate of what you can afford based on your finances. You're not making a commitment to a loan yet, but it can help you plan a potential budget. It is very important that you don't skip this first step because it will be very important as you look at homes.

How to get Pre-qualified for a Home Loan

Getting pre-qualified for a home loan can be a relatively easy process that can even be done over the internet. You will be asked to provide your financial information and some documents to the lender or bank you choose. You should do some research before you select a lender or bank, and remember that you don't have to stick to the same one for your pre-approval. Documents that you will have to provide include: your credit report, last two tax returns and a recent pay stub.

Begin Your Home Search

Once your lender or bank pre-qualifies you for a home loan, you can start your search for the perfect home with better established boundaries and an accurate budget. As you look for your dream home, remember to ;research the ;neighborhood where it is located ;and how that ;fits in with what you want. When you find your dream home, don't forget to purchase title insurance. ;Patriot Title Agency in Ohio ;is here to help you with all your title needs. Give us a call at ;(330) 479-3000 ;and make sure you have the most reliable team on your side.