Jeannette Hathaway
Jeannette Hathaway Miami Real Estate

FORECLOSURE SPECIALIST
   

MORTGAGE & TAX INFO


Pre-qualification is a term used in retail finance, and means that a loan officer has taken some information from the borrower, and made a tentative decision, but not verified any of it.

 

With a pre-qualification, the borrower is typically asked forhis or her social security number or other identifiers.  A borrower will give theiremployment, income and asset information and the amount of current monthly debt. In addition a borrower is asked about their general credit worthiness.

 

Based on this quick work up the borrower will be told that they pre-qualify for a certain loan amount. For example, if the borrower makes $15/h or $2600/month this is then calculated to an industry-standard ratio of debt to income, for example 36%. So if a borrower makes $2600/month they would be pre-qualified at a total debt of $936 (this includes any monthly payments, including car & credit card min. amount; along with the proposed payment of principal, interest, taxes and insurance amounts.

 

Pre-qualification simply denotes a process that has not yet been underwritten to the guidelines of a particular lending institution.

 

Getting yourself pre-qualified is an important first step before you start looking for a home.  Call me or email me if you need more information or would like an application to get the process started. 

 

Jeannette Hathaway

(305) 300-0542

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