If you are contemplating a real estate purchase within the next 3 -12 months be sure to get pre-qualified first! This simply means contacting a professional loan officer at a bank, credit union, mortgage lending institution to review your financial status and provide you a pre-qualification letter for you and your Realtor. When you do so the loan officer will examine your assets and liabilities, which includes your income and debt, to determine if you qualify, or meet the risk guidelines to obtain a mortgage loan. This inquiry is FREE and does not obligate you to use the source for the pre-qualification letter. In fact, after you are pre-quailified for a mortgage loan you may find it’s in your favor to compare loan programs and interest rates in order to receive the most cost-effective loan.

If you are uncertain of who to contact you can always call a local Realtor for guidance. Regardless of who you contact, once you are pre-qualified you can then approach the search for a new home with a clear understanding of what you can afford.  You will also enjoy the peace of mind of knowing you have the ability to move forward, and thus transact real estate!

So save yourself time, build confidence in the understanding of what you can afford, and avoid frustration from the start with a pre-quailification lender letter!