Getting Prequalified is not enough

Getting prequalified is not enough.

There are two different options to look at for an opinion of you’re ability to get a mortgage. One can get you to where you want to go. The other can be a waste off time and effort.

Prequalification in a mortgage situation usually means nothing more than you’ve talked to a mortgage lender and discussed your income and expenses. You spill your guts about your financial situation, your expenses and present income, how much cash you have save for the down payment and then the mortgage lender does some quick calculations and tells you a guesstimate of approximately how large of a mortgage loan you can get, based on today’s mortgage rates, assuming the accuracy of everything you’ve told them

In the book mortgage for dummies, Eric Tyson and Ray Brown said “Most lenders graciously provide a prequalification letter suitable for framing or swatting mosquitoes”.
Since nothing you’ve told the lender has been verified, the lender isn’t bound by the prequalification process to supply you with a home mortgage. Why try to find a house to purchase if you don’t know that you can borrow?.

During the underwriting portion of your mortgage application, the lender will verify all of your financial information. They will look closely at all sources of income as well as expenses.
Guidelines change frequently, but few lenders like to see a housing expense greater than 28% of your gross monthly income, with no more than 32% as your total monthly debt payments.