Getting prequalified or preapproved is an important first step in the home-buying process. While it’s not a requirement, it can help you understand how much home you may be able to afford and what loan options fit your financial situation.

A prequalification or preapproval letter can also make you a stronger buyer when you’re ready to make an offer, since it shows sellers and real estate professionals that you’ve already taken steps to verify your ability to finance a home. With recent changes in how buyers work with real estate agents, having clarity on your budget upfront may also help you have more informed conversations about compensation, negotiations, and next steps.

Speaking with a licensed Mortgage Loan Officer like LaidBack Lender can provide you with personalized guidance and help you explore loan programs that may be right for you.

Your credit score does  play an important role in determining whether or not you qualify for a loan, as well as the type of loan you may qualify for and the interest rate. Lenders use your credit score to determine risk. While higher credit scores usually mean better rates, you may still qualify for a mortgage loan even if your score is less than perfect.  

Have your pay stubs, W-2s, tax returns, bank statements, investment account statements and brokerage account information ready. We will send you a list of required documents so you can gather them ahead of time. Be sure to send everything in a timely manner to help keep things moving.

 Several things will be taken into account when determining how much you can comfortably afford. Consider how much you make, your monthly expenses, how much money you have saved, how much you can put towards a down payment, current interest rates and current home value