Thursday, June 21, 2012

Mortgage broker Los Angeles on What to know about Pre-qualification

As a mortgage consulting business in the Los Angeles area, we spend a lot of time answering questions about the homebuying process to people. We hope this blog will help clarify some of the confusing parts of this process. Today we are talking about mortgage pre-qualification, which is a confusing part of the process for many first-time homebuyers. Sometimes people confuse this with loan pre-approval, but it is actually something different. Mortgage pre-qualification is basically a no-strings-attached estimate of what you can afford in a home. This is how you will get your first ballpark price range. Unlike a loan process, where upon approval you are locked into a deal, pre-qualification is completely free of commitment. You may choose to work with the lender who does your pre-qualification (and they will certainly hope to win your business), but it is by no means an obligation. Pre-qualification is simply a part of the research and preparation that goes into making a smart home buying decision.

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