Profile picture for user8482443

What is involved in getting Pre-Qualified for a mortgage

My husband and I are interested in getting pre-qualified for a home mortgage to be used as a personal guideline for what we can afford and how much our DTI needs to be improved. We are not ready to actually apply for a mortgage loan (pre-approval) but are on a 6mos-1yr plan paying off a few smaller debts which will certainly improve our DTI and scores. Can this be done without a "hard' credit inquiry?
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
February 19 - Jacksonville
We think we've answered this question for you!
  • Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.
 
 

Answers (6)

One of the first steps would be to speak with a lender that best fits your situation to get pre-qualified. Then when you do apply for a loan, lenders like myself will need to look at several different things if you are trying to prequalify for a loan. We will need to analyze your assets, credit, expenses, income, debt, employment, down payment, etc. We will then determine whether you qualify and how much your qualify for with this information. Even though you do not plan to apply for a loan for another 6 months or so, I would recommend speaking with a lender as soon as you can. This will allow the lender to look through your finances and see what problems you should fix within the upcoming months. Then when the time to buy a home comes, you will be ready to go. There are also sites where you can have soft credit pulls that are meant for consumers so you may want to look into that.  [self promotion deleted by Zillow moderator. Please see our Good Neighbor Policy for posting guidelines]
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
February 20
Unless you have credit issues, there is NO reason to have anyone order your credit in order to pre-qualify you for a loan since a credit score of 700-800 has very little impact on your interest rate. 

If you have no credit issues and would like to know how much you qualify for, I would not talk to anyone who tells you they need to run credit.  It is completely unnecessary being that you are six months to a year from purchasing. 

I would recommend you yourselves order a copy of your credit report online now so that there is no inquiry and so you can see if there are any issues that you don't know about.  This way, you'll have plenty of time to take care of them before you're ready to purchase.

Also, dollar for dollar, buying down your interest rate provides you with much more buying power than does paying down debt.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
February 19
A pre-qual is a loan officers best guess of how much you would be approved for.   You would give him/her the basic information. (income, monthly debts, estimated credit score, how much money you have saved for a down payment, etc...)   The amount you qualify for is only as reliable as the information you provide. There is no need to pull a credit report or document your income or assets.

However, it is far from an exact science and it is highly recommended that you allow your loan officer to pull your credit, review your income and asset documents, and run your loan approval over an automated underwriting engine to know exactly how much you would be approved for. You won't take much of a hit to your credit score by just having one company pull your credit.    I have seen people get approved with a higher debt to income ratio than I would have "guessed" they could get. I have also seen people get turned down for loan amounts I thought would be OK. That is why it is important to run the automated approval and know for sure. 

In your case, it will also help you figure out how much debt you need to pay off to get approved for the amount you desire. 

Good Luck!  
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
February 19
It can and I can actually team up with you to assist throughout the process. You want to keep your DTI at 50% or lower. The main thing also is to include compensating factors. Accounts such as 401K, Mutual Funds and other liquid asset accounts help. Again I am with you throughout the entire process.

Feel free to contact me through my profile for a no cost, no obligation rate and fee estimate. If the numbers work, great. If not, at least you know exactly where you stand.

  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
February 19

It can be done with general recommendations but getting a specific list tailored to you would be your best bet as this is the largest purchase you will ever (most likely) make. Bite the bullet and get a hard pull-the inquiry will have dropped off of your credit report in 120 days and not cause much damage at all to your score.

  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
February 19
Contact a loan person and step through questions and answers A tri merge credit report ( all 3 bureaus ) would be valuable to have pulled to make sure credit picture is accurate
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
February 19
 
Related Questions
How much home can i afford?
Profile picture for Alan Craft
Latest answer by Alan Craft
July 25 | 5 answers
LOOKING FOR IN HOUSE or COMMERCIAL MORTGAGE for personal res & rental house purchase
Profile picture for Greg  Giniel
Latest answer by Greg Giniel
July 18 | 1 answers
Debt to Income Ratio
Profile picture for wayne lancaster
Latest answer by wayne lancaster
June 11 | 7 answers
Is child support computed in Debt to Income ratio?
Profile picture for Edward Fallon
Latest answer by Edward Fallon
March 20 | 9 answers
What is involved in getting Pre-Qualified for a mortgage
Profile picture for Brian Nguyen
Latest answer by Brian Nguyen
February 20 | 6 answers
Mortgage Rates
 
Be A Good Neighbor

Zillow Advice depends on each member to keep it a safe, fun, and positive place. If you see abuse, flag it. More on our Good Neighbor Policy.

Homes for Sale
  1. 1462 Otoes Pl, Jacksonville, FL Home For Sale
    1462 Otoes Pl, Jacksonville, FL 32259

     For Sale: $330,000

    • Beds: 4
    • Sqft: 2300
    • Baths: 2.0
    • Lot: 18956
  2. 2816 Frontier Ave, Orange Park, FL Home For Sale
    2816 Frontier Ave, Orange Park, FL 32065

     For Sale: $129,900

    • Beds: 3
    • Sqft: 1758
    • Baths: 2.0
    • Lot: 11238
  3. 7443 Steventon Way, Jacksonville, FL Home For Sale
    7443 Steventon Way, Jacksonville, FL 32244

     For Sale: $215,990

    • Beds: 4
    • Sqft: 2403
    • Baths: 3.0
    • Lot: --