Getting pre-qualified is the first step in the home buying process. It is a very simple mortgage application that involves supplying a lender with personal information regarding your debt, income and assets.

A lender can use these three points to determine your financial eligibility. This financial picture is used to determine what mortgage amount you qualify for, possible interest rate, monthly payment and any other costs involved in the process.

The obvious advantage of completing a mortgage prequalification before you look for a home is being informed in advance on how much you can afford to spend. Knowing what you can afford can minimize heartbreaks if you fall in love with a home you cannot afford.

Prequalification also affords you the luxury of having the mortgage lender explain the mortgage options that may best suit your lifestyle.  Getting pre-qualified for a mortgage also enables you to move quickly when you find the home of your dreams and make an offer that is not contingent upon obtaining financing.

It also lets a seller know your offer is serious and could prevent you from losing out to another purchaser who already has financing arranged. Some sellers require a prequalification letter when the offer is submitted.

I have prepared an easy worksheet to use BEFORE you do an application. All the information in the worksheet is what lenders possibly require information on.  Work on getting as much of the information on the worksheet together, so when you are asked a question you will have your information ready.

Here is a checklist/worksheet of things you will need to get pre-qualified:

GENERAL INFO

• Your Name
• Co-Borrower Name
• Mailing Address
• Contact Phone Numbers
• Co Borrower Contact Info
• Approximate Sales Price (if you have no idea leave blank)

EMPLOYMENT INFO

• Employer Name
• Gross Yearly Salary
• CO-Borrower Employer
• Gross Yearly Salary
• Other Income
• Other income from Co Borrower

ASSET INFORMATION (ALL ACCOUNTS)

• Savings
• Checking
• Mutual Funds
• Stocks and Bonds
• 401K/Retirement
• Other Assets
• Potential Gifts

DEBT INFORMATION (ALL ACCOUNTS)

• Combined Credit Cards: Current Balance
• Monthly Payments
• School Loans Current Balance
• Monthly Payments
• Car Loans
• Combined Personal Loans
• Monthly payments

Here is a Lender I use frequently and fully reccommend Emily Duggan.