Why Prequalify?

How much can you afford to borrow for a home loan? How much do you have to put down? What would your payments be? If you agree to purchase a home, are you absolutely sure you can get the mortgage to fulfill that agreement? What if your financing falls through. Can you get the money another way? Can I borrow the money for the down payment? Are there zero down options? Which is the best way for me?

The mortgage process can be baffling and scary. Pre-qualifying for a mortgage with knowledgeable mortgage professionals like Berkeley Mortgage Group Inc. can put all of this fear and anxiety behind you. By pre-qualifying, you will know exactly how much you can borrow, what the terms would be and how much you should expect to spend per month before you start shopping.

Many purchases fall through because buyers simply don't qualify for the purchase of the home that they want to buy. In many cases, real estate agents won't even show you homes without obtaining a pre-qualification letter first. This is because they have a responsibility to their clients to show their houses to people who not only want to buy, but are also capable of doing so. It is wrong to have a seller take their house off the market by signing a purchase agreement when the potential buyer may be incapable of closing the deal. Pre-qualification can also strengthen your bargaining position. By being pre-qualified, the processing time it takes to close your mortgage loan is greatly reduced. This can often allow you to offer a slightly lower price for the house in exchange for a quicker closing. Pre-qualification allows you make an offer with full confidence that you have the funds available to close the deal. In order to understand this, imagine yourself in the seller's position. You want to sell your home for $105,000. It has been on the market now for three months and you are making mortgage payments on your new home as well as the one you have for sale. A buyer walks in with an offer of $102,000, but it will take them 45 days to close the loan and they have not been pre-qualified for the money. Another makes an offer of $100,000, but they are able to close the deal in 14 days. This potential buyer also has a letter from a lender stating that they are able to provide the funds to close the deal. Which would you choose? This software is designed to give you a good idea of what you are able to work with. It will help you to calculate many "what-if" scenarios. It is not, however, able to provide you with the knowledge and experience of a trained mortgage professional such as the people at Berkeley Mortgage Group Inc.. By contacting a mortgage professional for a pre-qualification before you start shopping for a home, you are putting yourself into the best possible negotiating position available. That of a buyer with money to buy. It will go a long way to relieving some of the stress and anxiety that comes along with the decision to purchase a new home.

So, if you have made the decision to start shopping for a home, don't wait!