What is a mortgage prequalification?
Whether you’re a first-time homebuyer or looking to move into another home, consider getting a mortgage pre-qualification letter before house hunting.
This can really help streamline the home-buying process.
What is a prequalification?
Based on income and other basic factors, a mortgage prequalification estimates how much you can afford. The process can be typically done by phone or online. You’ll provide your monthly income, an estimate of your monthly debts, and an idea of how much you’ll have for a down payment and closing costs. Your credit may be assessed to get an idea of your creditworthiness.
A prequalification letter is not a binding contract and isn’t a guaranteed loan offer. It doesn’t require you to commit to any loan until you’ve decided to make an offer on a house.
Why should you prequalify?
Before you start searching for a home, it is recommended that you get pre-qualified. Showing your financial strength to sellers, it gives you the power to make an offer. Realtors also prefer you have a prequalification letter before showing houses. The letter lets the realtors know what your estimated price range is.
What’s included in your letter?
Your prequalification letter will have details about the amount you’re prequalified for and the type of loan program you qualify for. These include conventional, FHA, VA, and USDA. Adirondack Bank offers a variety of mortgage products with convenient terms and competitive rates. Let our team of dedicated staff help you choose the product that’s right for you.
How long does the prequalification last?
A mortgage prequalification letter typically lasts for 60 days. Once your letter expires, you’ll need to get a new letter.
Looking for a home?
Adirondack Bank’s loan officers are ready to help you with all your home financing needs. We’ll walk you through the mortgage process. Contact one of our mortgage loan originators for more details.
The information in this article was obtained from various sources not associated with Adirondack Bank. While we believe it to be reliable and accurate, we do not warrant the accuracy or reliability of the information. Adirondack Bank is not responsible for, and does not endorse or approve, either implicitly or explicitly, the information provided or the content of any third-party sites that might be hyperlinked from this page. The information is not intended to replace manuals, instructions or information provided by a manufacturer or the advice of a qualified professional, or to affect coverage under any applicable insurance policy. These suggestions are not a complete list of every loss control measure. Adirondack Bank makes no guarantees of results from use of this information.
