Pre-qualification acts as a dry run for the loan application process. The mortgage lender will use details you provide about your credit, income, assets and debts to arrive at an estimate of how much mortgage you can afford. The whole process may take only minutes or a few hours at most, and it is free. While a “pre-qual” is non-binding to the lender, it does serve as a strong indicator to potential builders/sellers of your general creditworthiness. Most builders, realtors, and sellers will not grant you access to a new home until you have a pre-qualification letter. This is to ensure you are a serious, qualified buyer. Jordan Homes of NC has preferred partners who are ready and willing to assist you in getting pre-qualified.
Summary: Think of a mortgage pre-qual as a nice ballpark number to have if you’re just casually shopping. Just don’t consider it as a guaranteed amount that you’ll eventually be approved for.