How to Get Prequalified for a Mortgage

How to Get Preapproved for a Mortgage

When you’re ready to buy a home, getting prequalified for a mortgage is a crucial step. Prequalification can provide you with valuable information about your borrowing capacity, interest rates and mortgage options that are available to you. Here’s how to navigate the process:

  1. Understand What Prequalification Means
  2. If you’re unsure how much home you can buy, prequalification can tell you what kind of home loan you can realistically get.

    Once you’ve settled on a home you want to buy, prequalification can show a seller that you’re a serious homebuyer who is unlikely to have mortgage funding fall through before completing the purchase.

    During prequalification, you will complete a mortgage application, and the lender will verify the information you provide. They’ll also perform a credit check.

  3. Gather Necessary Documents
  4. To get the ball rolling on prequalification, you’ll need to provide important details to the lender. Be sure you’re familiar with the following information.
    • Personal Information: Your full name, contact details and Social Security number.
    • Financial Information: Details about your income, employment history and any outstanding debts.
    • Asset Information: Information about savings, investments, retirement accounts and other assets.
    • Credit Report: The lender will pull your credit report to assess your creditworthiness.

    If you have a co-signer, they’ll also need to provide the same information.

    Cadence Bank uses Finicity, a Mastercard company, allowing customers to import their asset, income and employment information directly from their financial institutions digitally, eliminating the need to hunt for most paperwork.

  5. Check your Credit Score
  6. Your credit score plays a significant role in the prequalification process. A higher credit score generally leads to better loan terms. Review your credit report and address any discrepancies or issues before applying for prequalification. If you have questions or concerns about your credit score, you can speak with a Cadence Bank lender who can help give you guidance and advice. After all, we are the Home Loan Experts.

  7. Start the Application
  8. You can initiate the prequalification process online by contacting a local loan officer. A Cadence Bank loan officer will review your details and verify your financial standing.  

  9. Receive Your Prequalification Information
  10. Once approved, you’ll receive information about the type of loans you qualify for. You will learn the estimated amount you qualify to borrow, and you can work with your Cadence Bank loan officer to identify the types of loans available to you (such as fixed-rate, adjustable-rate, FHA or VA loans, etc.)

    Why is Prequalification Important?

    • Competitive advantage: Sellers are more likely to make a purchase agreement with a prequalified buyer.
    • Confidence: With prequalification, you can confidently make an offer on a home and know what kind of terms your home loan will have.
    • Streamlined Process: Your lender already has most of the necessary information for final loan approval when a buying agreement is reached.

    Remember, a mortgage prequalification is an important step toward homeownership. It empowers you to shop for homes within your budget and gives you good standing to negotiate.

    Are you ready to get started? We can help! Visit Cadence Bank online to find a local loan officer in your area.


    Sources:

    https://www.cnbc.com/select/why-you-need-a-mortgage-pre-approval/

    https://www.investopedia.com/mortgage-preapproval-4776405

    https://www.forbes.com/advisor/mortgages/what-it-takes-to-be-preapproved-for-a-mortgage-and-why-it-matters/


    This article is provided as a free service to you and is for general informational purposes only. Cadence Bank makes no representations or warranties as to the accuracy, completeness or timeliness of the content in the article. The article is not intended to provide legal, accounting or tax advice and should not be relied upon for such purposes.


By: Cadence Bank on May 9, 2024

The home you want is within reach.

couple hugging in new home
dot image