The importance of getting pre-qualified

When you begin the home buying process, you’re often so anxious to start looking at houses you skip the first step. Getting pre-qualified before you start looking is important not only to make sure you are qualified to get a loan in the first place, but to learn what your true price range is. For example, interest rates in April of 2022 were in the mid 3’s. They have since rise to the 7’s. What this means to a buyer is that for every $100,000 you borrow, your payment will be around $400/month higher now than it would have been when rates were lower. This kind of information is vital to you finding a home that not only you can afford but won’t make you “house poor”. Rates will come back down eventually so there is always the option of refinancing at that point. Once you’ve been pre-qualified you’ll know exactly what you can afford and you’re ready to go look at some houses!