What does it mean to get “pre-qualified” for a home loan?
Duoak hit it on the head. “Pre-qualify” means the loaning institution has approved you (aka “qualified” you) for a certain maximum loan amount. You can “pre-qual” for a loan amount prior to looking, or find a house and get approved for the asking price. Smatest thing to do though is “pre-qualify” for your maximum amount so you know the price range you can look for. When you find a house and contact the agent, as you haggle for a price, you can get the bank to print the letter for the agent. The agent may ask you for the “pre-qual” letter in advance but you do have room there. Keep the business card and info from the person you talked to from the bank. If the agent wants the letter, tell them you don’t have it but they can call the person at the bank to confirm they have been “pre-qualified” for a loan. If you are pre-qualified for a loan higher than the home you want to buy, the real estate agent hired by the seller may use that as leverage when you try to haggle the price downwards.
