Want to Buy a Home? Get Prequalified First; Here's Why
Let’s be real: shopping for homes before getting prequalified is like showing up to a car dealership without your wallet. You can look, but you probably won’t be driving anything off the lot.
If you’re serious about buying a home and want agents and sellers to take you seriously too, you need to get prequalified. Here’s what that means, why it matters, and how to do it without getting screwed.
What Is Prequalification?
It’s a lender’s initial estimate of how much house you can afford based on your income, credit, debt, and basic financial info. Think of it as your “buying power preview.”
It’s not a loan approval, but it’s a strong first step that shows you’re not just window shopping.
Why It Matters:
Sellers won’t even look at you without it. Most won’t entertain an offer without some kind of lender letter.
Agents will treat you differently once you’re prequalified because now they know you're not wasting their time.
You’ll avoid heartbreak. Don’t fall in love with a $900K home when the bank will only loan you $600K.
It speeds things up. In competitive markets, time kills deals. Being prequalified lets you act fast.
What You’ll Need to Provide:
Every lender is a little different, but expect to share:
Income info (pay stubs, tax returns, etc.)
Debt obligations (student loans, car loans, credit cards)
Credit score info (yes, they’ll check it)
Basic assets and savings (how much you’re bringing to the table)
It’s not full-blown paperwork hell that comes later with preapproval; but be ready to share your financial reality.
Where to Get Prequalified:
Banks and credit unions: Good if you’ve got history with them.
Mortgage brokers: Can shop rates across multiple lenders.
Online lenders: Fast, convenient, sometimes aggressive.
Local lenders: Often more personal and more accessible when things go sideways.
Pro tip: Get quotes from more than one lender. It doesn’t ding your credit if done within a short window (typically 14 days).
Prequalification ≠ Preapproval
Don’t get it twisted.
Prequalification is a soft check—a ballpark estimate.
Preapproval is the next level—full docs, verified, and closer to actual loan commitment.
If you're ready to put in offers, aim for preapproval. But prequalification is the gateway drug.
If you’re thinking about buying a home, don’t scroll listings, tour open houses, or call agents until you get prequalified. It saves time, prevents frustration, and sets you up for success.
This is your money. Your future. Be Smart AF about it.
