Prequalification Helps Homebuyers Get the Right Mortgage

By Karen Lawson Columnist

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If you're like most homebuyers, you might shop for your dream home before seeking a mortgage loan. As the variety of mortgage loans and mortgage terms has increased, it's more important than ever to shop for your mortgage loan and get prequalified before shopping for a home. Here are some reasons why shopping for a mortgage before looking at homes is so important:

  • » Establishing affordability: Your mortgage lender can help determine what you can realistically afford to spend on your new home. Lenders use established criteria for helping you understand mortgage terms, while avoiding getting in too deep with a mortgage beyond your means.
  • » Learning about mortgage terms: Although it's possible to get a fixed rate mortgage loan, a mortgage lender can show you different options for mortgage terms that may be appropriate for your budget and circumstances. A wide variety of mortgage loan products are available to help you meet budget and lifestyle considerations. Your mortgage lender can also offer advice about special programs for first time homebuyers that may help you qualify for the home mortgage you'll need to buy the home you want.
  • » Increased Buying Power: If you're prequalified for a mortgage loan, you'll be able to concentrate on homes you can afford, and will have an edge on unqualified buyers. You can further increase your desirability as a buyer by getting preapproved for a specific mortgage loan.
Buying your first home is an exciting prospect and a major investment. Getting prequalified for your mortgage loan can help you find the home that's right for you.

About the Author
Karen Lawson is a freelance writer with more than fifteen years of experience in mortgage banking. She holds an MA degree in English from the University of Nevada, Reno.

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