If you're planning on buying a home in Nashville or the surrounding area, chances are that you'll need a mortgage to pay for that home. Getting pre-qualified is the initial step in the mortgage process, and most lenders these days can pre-qualify you for a loan over the phone.
Keep in mind that getting pre-qualified for a mortgage and getting pre-approved for one are two entirely differnent things.
Getting Pre-qualified for a Mortagage
When it comes to getting pre-qualified for a loan, you supply the lender with your overall financial picture, including your debt, income and assets. After evaluating this information, the lender can give you a "guesstimate" of the amount for which you qualify for.
Typically, there is no cost to you for getting pre-qualified. It doesn't require much of the lender's time as it doesn't include an analysis of your credit report or an in-depth look at your ability to buy a home in Nashville or the surrounding area.
During the initial pre-qualification step, you have the opportunity to discuss any goals or needs you may have regarding your mortgage with your lender. At this point, the lender can explain the various mortgage options you may qualify for as well as recommend the specific loan type that might best suite your individual financial situation.
It is important to not assume that a lender will provide your loan just because you are pre-qualified until you have been pre-approved as this mistake could cost you your new home. A pre-qualified letter is not verified, and does not count for much if you are competing with other Nashville home buyers who have already gone through the pre-approval process.
Getting Pre-Approved for a Mortgage
A pre-approval means that you've applied for a mortgage - and you have filled out the mortgage application, received your credit report, and verified your employment, assets, etc.
Give us a call and we will put you in touch with one of our highly-qualified, preferred lenders. Get pre-approved for a mortgage today!
With a pre-approval, you also know exactly how much the maximum loan amount is that you qualify for - in other words, how much the lender is willing to loan you. A pre-approval puts you at an advantage when dealing with a potential Nashville home seller, as he or she knows you are one step closer to obtaining an actual mortgage to buy their home.
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You also want to keep in mind that pre-approval does not mean the lender "guarantees" giving you the loan. Rather, you are approved to get a loan - "unless something goes wrong." Commitment to the loan generally comes after the bank has had the house appraised to make sure the price you're paying for it isn't higher than the home's current market value.
MORE GREATER NASHVILLE HOME BUYER INFO
- Avoiding Financial Stress
- Build a Plan of Action and Get Ready
- Finding the Right Seller
- Hot, Normal, and Cold Markets
- Importance of Inspection
- Your Credit Score Matters
- Is Buying a Home Still a Smart Plan?
- Buying a Foreclosure
- Why Hire a Buyer's Agent?
There are many components to home buying process. That is why you want an experienced Greater Nashville real estate agent working on your behalf. Our team of highly experienced real estate professionals provides exceptional, personalized service - and will work relentlessly to make sure buying a home in the Nashville area is a positive and rewarding experience!
We look forward to assisting you with your Middle Tennessee real estate goals. Please give us a call or send us an email today!
RE/MAX Fine Homes
1624 Westgate Circle Suite 125
Brentwood, Tn 37027
Cell: (Direct) 615.438.4941