Preparing to purchase a new home can be stressful. To make the process smoother, consider a mortgage prequalification by your local bank. The prequalification process will identify, upfront, how much of a mortgage you can afford, so that you can more effectively shop for homes.
To determine your prequalified price range, a mortgage specialist will look at your credit report to compare your current financial obligations to your household income.
Reviewing your credit report at this early stage may also help identify any potential roadblocks to mortgage approval, such as debt that has gone unpaid. In any case, many people find that doing the prequalification leg work upfront saves time that might otherwise be spent looking at homes priced beyond their means. Simply put, a prequalified buyer is a better-prepared buyer.