What is important to know about pre-qualifying for a mortgage?

Years ago, when a person wanted to buy a house, they would go to their bank and have their finances examined to see how much money they can afford to spend on a piece of real estate. The situation in New York is different now. A pre-qualification letter is a crucial step to being approved for a mortgage so you can buy a home. Many times, banks want you to have a home in mind that you want to buy and then will give you a pre-qualification letter if they decide that you are financially suited to purchase this home. There are a lot of different factors that are taken into consideration when you are trying to buy a home. The lender is not going to pre-qualify you if you have a bad credit history or if they realize that you will not be able to make the payments on this particular home because your income is simply not high enough.

Before you consider obtaining a pre-qualification letter, it is beneficial to have a good idea of what you can afford and what your finances look like. If you know that there is no way you are going to be able to afford a home, don’t waste your time trying to get pre-qualified for that mortgage. It would be smart to speak to an experienced real estate attorney who can give you an idea of what steps would be best for you to take. It is important that you have realistic expectations regarding the home you can buy. Trying to purchase a home that is beyond your financial means can be detrimental because you don’t want to end up unable to pay the mortgage and having to foreclose.

If you require experienced legal assistance for any of your real estate, bankruptcy or family law matters, contact the Mark Scollar Law Office today to schedule a consultation.