Getting pre-qualified for your loan is one of the most important steps in your home buying process. Many people rush out and make an offer on a home only to find out later that they can not qualify for the loan or loan terms do not match the purchase terms. Talking with a mortgage loan officer before you start shopping for a new home will save an immense amount of time and unwanted stress.
While prequalifying for a loan doesn't necessarily guarantee that you will be able to purchase the home of your dreams, it does help you and potential lenders know your borrowing power and what you can afford in terms of a monthly mortgage payment. Prequalifying for a loan simply means that you have taken an inventory of your income and assets and submitted them to your potential lender. Based on that information you should be able to qualify for a home mortgage loan.