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PRE-QUALIFYING

After evaluating your income, assets and employment, your Loan Consultant can give you an idea of the mortgage amount for which you may qualify.

Are you ready to begin shopping for a new home? Since it’s an exciting time and something you’ve been saving for, it’s tempting to begin shopping for your dream home before you know how much home you can afford.

It takes a little research to be ready to buy a home.

Before you start viewing homes or attending Open Houses, you need to know the answer to a key question, “How much home can I afford?” Doing the math and seeing how your mortgage payment affects your cash will help you immensely. You’ll have a much better idea what type of home you can afford, and which ones are out of your reach for now. 

A loan pre-qualification can be a big help.

The ideal home buying budget will include more than the price of a property. You’ll also need to consider how much cash you have available for a down payment and closing costs, as well as research any additional expenses that you’ll need to keep in mind. Also, a home can present its owner with an unexpected repair bill – and if it’s for a high-dollar item like an air conditioning or a plumbing system, you’ll want to be prepared. Other new obligations, such as taxes and homeowner’s insurance, need to be part of your budget as well.

If you’re beginning to think that you could use a little help with planning your mortgage budget, contact a Caliber Loan Consultant to assist you with pre-qualifying for a mortgage. Pre-qualification is a service that we provide at no cost, and it will provide you with the numbers and assurance you need for a successful home shopping experience. If your family is willing to help you with the down payment or you are interested in low down payment programs, we offer loan programs that may meet such needs. Pre-qualifying for a mortgage will provide you with a clearer picture of what you can expect, what programs are available, and what you can afford.

Here’s how to obtain a loan pre-qualification.

Since we prepare these on a weekly basis, we’ve already streamlined this process so you won’t have to spend hours calculating a budget on your own. The Caliber loan pre-qualification process generally begins with an informal chat so your Loan Consultant can get a good picture of your current finances. We can do this all by phone if you’re too busy to come by in person. Either way, you’ll discuss your income, any long-term debts such as student loan repayments, and your credit history with your Loan Consultant.

After your Loan Consultant reviews your states income, debts, and credit score, you’ll be presented with a ballpark figure of an affordable home buying budget. This approximation of the amount of loan funds Caliber may provide is called a pre-qualification*. It will help you shop smart. You’ll know ahead of time what you can afford, so you can concentrate on finding homes that are within your price range.

Consider these 5 benefits of pre-qualifying.

  1. Pre-qualification will help determine the estimated mortgage loan amount for which you are eligible, and what will be truly affordable.

  2. Some Real Estate Agents may encourage you to have a pre-qualification letter in hand before you begin to arrange appointments to view homes, or begin attending open house events.

  3. By pre-qualifying, you will have an estimate of your potential monthly mortgage payment. Then, you can consider how your monthly budget will be affected.

  4. Being pre-qualified may increase your chances of winning a home bid or negotiating with a home seller. It proves you’ve already researched your budget with a professional Loan Consultant.

  5. It can reduce stress, costs and time by helping you be prepared. And if you find out that you can’t quite afford a home now, you’ll know what you need to do to reach your goal.

The next step: Pre-Approval

Let’s say your go shopping with your Caliber loan pre-qualification and view a home that says “I’m just what you’re looking for”. You take a closer look and decide you want your Real Estate Agent to make an offer to the home’s seller. While a loan pre-qualification can prove you’re a serious buyer, a loan pre-approval goes much further.

Make your offer stronger with Caliber.

To pre-approve you for a loan, your Loan Consultant will help you complete a loan application. Next, you’ll need to supply documents that verify your income, employment, credit score, financial assets, and the source of funds for any necessary down payment.

Before you start digging through your files, ask us if we can verify your assets and employment electronically. We may be able to request these for you and have them securely delivered to us electronically in just minutes instead of you having to dig through your paper files.

Why do home sellers and Real Estate Agents love pre-approvals?

Generally, it takes a few days for Caliber to process your pre-approval, but it will be well worth it when it’s time to play hardball with a home seller. Look at it from a seller’s point of view: would you rather do business with a prospect who can prove they have financing already in place, or someone who insists they can “probably find the money somehow”?

Let us guide you home.

Buying a home is a fulfilling, exciting time, even if it’s not your first one. We’re here to help ensure you enjoy real peace of mind during every stage of the home ownership process. And, with our Ultimate Home Buying Experience, we offer you the best of today’s technology to create a faster, easier home loan process. Use the search feature below to find a Loan Consultant today!


*A pre-qualification is not an approval of credit and does not signify that underwriting requirements have been met.

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