New Mexico is home to some of the most unique and diverse architectural innovations in the country. Pueblo Revival homes, ranch-style abodes, and contemporary designs offer home shoppers in New Mexico a diverse range of choices.
Buying a home is a big deal, however, and the process can quickly become overwhelming. Mortgage prequalification, a lender’s initial assessment of how much you may be able to borrow for a home loan, is an early step that aspiring homeowners can take today to make the process efficient and stress-free.
Here are six reasons that house hunters in the Land of Enchantment should get a mortgage prequalification before scrolling through real estate listings or setting foot in an open house:
- Know What Is Affordable
Getting a mortgage prequalification gives a home shopper a ballpark figure of affordability in the current market. With a basic credit review performed by a credit union or other financial institution, an aspiring homeowner can get an estimate on the maximum amount of financing available for a home purchase.
- Look Good to Sellers
The competition for homes is stiff nowadays. With a limited inventory of housing available in New Mexico and throughout the country, house hunters should be keenly aware that they are not alone in the market. A mortgage prequalification serves a good first impression to home sellers who are looking to distinguish between casual house browsers and serious home shoppers.
- Save Time
It’s an unavoidable reality for home shoppers — a home purchase is accompanied by a mountain of paperwork. Getting a mortgage prequalification gives homebuyers a head-start on tackling the red tape so that they may jump on a great deal when it becomes available. When time is of the essence, a mortgage prequalification is an easy way to complete the early steps toward homeownership.
- Bargain Better
While a mortgage prequalification doesn’t guarantee a home loan, it provides some solid ground in negotiations with home sellers. It empowers the homebuyer with information on what they may offer, which makes bids more accurate and realistic. Avoiding the heartbreak of pursuing properties that are later revealed to be out-of-reach is an important part of achieving the dream of homeownership.
- Stress Less
Not knowing whether financing is available can be a source of significant stress to a home shopper. Getting a mortgage prequalification is a confidence booster that signals to aspiring homebuyers that they are on the right track. Reducing the stress associated with purchasing a home is a critical confidence building exercise that can empower aspiring homeowners throughout the process.
- Get the Best Interest Rate
In some cases, a credit union or other financial institution may offer better interest rates to homebuyers who are prequalified for a mortgage. In today’s market, securing the best interest rate possible will go a long way towards significant savings over the life of a home mortgage.
Is getting prequalified for a mortgage mandatory? While it’s not required, it can serve as a game-changer for those in the market for a home of their own. A mortgage prequalification helps outline a budget, makes a good impression on home sellers, saves time, assists with negotiations, and can even help secure the best interest rate available.
If you’re still unsure of whether a mortgage prequalification is the right step for you and your own situation, a mortgage advisor can help with any questions you may have.
Del Norte Credit Union (DNCU) is your ideal home mortgage lender in New Mexico!
As you prepare to make one of life’s most important decisions, it’s critical to have the right people on your side. A dncuMortgage officer can help guide you throughout the entire home buying journey with expert insights into the New Mexico market while also bringing perspective to issues involving current interest rates and home affordability.
Reach out to Del Norte Credit Union today at 877-818-DNCU (3628), visit us online, or stop by one of our branches located throughout northern New Mexico or Rio Rancho and discover why so many choose to finance their dream home with dncuMortgage.
Disclaimer: This article is for informational purposes only. For advice regarding your specific financial situation, please consult a financial planner or a trusted financial professional.