This is the process where a lender takes the above ratios and calculates your personal “high limit” for a loan. The Pre qualification process will help you determine what price range you can expect to search in. This process may identify problems with your credit report that are erroneous allowing you to take corrective action. Many sellers require a pre qualification letter from a bank or mortgage broker in order to accept an offer on a home or property. The Pre Qualification process will require virtually all your personal financial information. The required information includes but isn’t limited to credit report and score, amount of money in savings, checking, stocks, mutual funds, 401Ks, Roth IRAs, and any other cash reserves. It will require a listing of all your assets and liabilities as well as your tax returns from 3 previous years. This process can seem uncomfortable and awkward to a first time homebuyer because of the personal nature of the information required, however Pre qualification is a critical part of the home buying process.
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Lindbergh Field, CA
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