Now don’t get too saucy; however, being prequalified for a mortgage loan should help you feel more assertive as you’re home-shopping, particularly if you’re a first-time homebuyer. No fraud condition here. Do you like those light fixtures? Ensure they’re in your proposal to purchase! Why not request all that you need — you’ve been prequalified, and that will convey some genuine load with the sellers.
It’s a sellers’ market, and that implies you may require additional ammunition if you want to place an offer on a decent home in a desirable location. A prequalification not only makes your offer credible but also affords you an advantage, should you submit an offer at the same time as another home-shopper. A prequalification could be one of the deciding factors in the seller accepting your offer over another.
Regardless of whether you’ve crunched the numbers yourself, it pays to meet with your lender, lay out all your finances, and determine what you can afford. It will save you time, energy, and potential disappointment if you find out you’re home-shopping at excessively high of a price point before you make your offer (or conversely, perhaps you can afford more than you realize). Furthermore, getting prequalified can be a decent method to spot potential issues with your credit before making a serious offer on a home.