Good question. There are a few good reasons for this.
The first is to properly set your expectations as a buyer. This sounds basic, but what if you think you can afford more than you actually can?
What if you start shopping, find your dream home, then discover you aren’t qualified to buy it?
You’re setting yourself up for disappointment as your dream home slips away.
Second, your mortgage professional will be able to tell you what you can use for income and assets, and can pull your credit.
This credit pull is reason enough to get prequalified. Yes, you are able to pull your own credit score, but you still need to know the impact of this score.
Your mortgage professional can tell you how it will affect your interest rate and for which programs you qualify.
This is valuable information to have as you start to shop.
Third, if you need to pay down or pay off debt to get your debt ratios in line, it’s better to know sooner rather than later.
If you find out what you need to do after signing a home contract, you might not have the time line or resources to take care of it all before closing.
This could spell disaster.
Lastly, you should get preapproved so real estate agents and sellers will take you seriously.
Some may not talk to you at all without a preapproval. Having that preapproval letter in hand will set you apart from unqualified buyers and take you a long way in the home-buying process.
Ask your mortgage professional for more details on how to get preapproved. His or her assistance will be invaluable as you begin the search for the perfect place to match your budget and lifestyle.