Spring and summer are typically the busiest times in the housing market. As inventory increases and more buyers begin their search, competition can heat up quickly. If you are thinking about buying a home this year, now is the time to prepare.
One of the most important first steps is understanding mortgage pre-qualification and pre-approval. Taking action early can help you shop with confidence and move quickly when you find the right home.
What is mortgage pre-qualification
Mortgage pre-qualification is an initial review of your financial situation to estimate how much you may be able to borrow. A lender looks at factors such as income, debt, assets and credit history to provide a general loan amount range.
Pre-qualification helps you:
Understand your potential price range
Set realistic expectations before house hunting
Identify areas you may want to improve, such as credit score or debt levels
This step is usually quick and can often be completed online or with a short conversation with a lender.
What is mortgage pre-approval
Pre-approval goes a step further. During pre-approval, your lender verifies your financial information with documentation like pay stubs, tax returns and bank statements. If everything checks out, you receive a pre-approval letter stating how much you are approved to borrow.
A pre-approval letter can:
Strengthen your offer in a competitive market
Show sellers you are a serious buyer
Help speed up the closing process
In a busy home buying season, having pre-approval in hand can give you a meaningful advantage. To make the process even smoother, Solarity provides a clear pre-approval checklist so you know exactly what documents and information are needed before you apply.
How to prepare before applying
Getting organized ahead of time can make the process smoother. Before applying for pre-qualification or pre-approval, gather:
Recent pay stubs and W-2s or tax returns
Bank statements
A list of debts and monthly payments
Information about any additional assets
It is also wise to review your credit report for accuracy and avoid taking on new debt while preparing to buy. Even small changes to your debt-to-income ratio can impact your loan options and interest rate.
Other factors to keep in mind this season
Home price range is only part of the equation. As you prepare to buy, consider:
Closing costs
Closing costs typically range from 2 to 6 percent of the loan amount. These may include lender fees, appraisal fees, title costs and prepaid taxes and insurance. Budgeting for these expenses ahead of time can prevent surprises.
Down payment options
While some buyers choose to put 20 percent down, many loan programs allow for much lower down payments. Understanding your options can help you determine what works best for your financial situation.
Interest rates
Rates can fluctuate based on market conditions and your individual credit profile. Starting the conversation early allows you to explore different loan structures and see how rate changes affect your monthly payment.
Exploring your home loan options
Solarity Credit Union offers a range of home loan options designed to support buyers at every stage.
Purchase home loans are available for primary residences and second homes, with both fixed-rate and adjustable-rate options. For those new to the process, Solarity’s first-time homebuyer programs provide additional guidance and flexible solutions, including low down payment options for qualified borrowers.
Solarity also offers a transparent flat origination fee rather than a percentage-based fee, which can help borrowers better understand and manage their upfront costs.
The goal is simple: provide a straightforward, supportive mortgage experience so you can focus on finding the right home.
Start early and move with confidence
If you are planning to buy during this home buying season, getting pre-qualified or pre-approved now can put you in a stronger position later. It clarifies your budget, strengthens your offers and helps you move quickly when opportunity knocks.
Connect with a Solarity Home Loan Guide or apply online to begin the pre-qualification process. With the right preparation, you will be ready to make your move when the time is right.
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