If you’re in the market for a new home, you’re probably excited about the prospect of finding your dream house. However, before you start attending open houses and browsing online listings, it’s important to get prequalified by a lender. Prequalification is an important step in the home buying process that can help you in a number of ways.

First and foremost, prequalification can help you determine how much house you can afford. By getting prequalified, a lender will evaluate your financial situation, including your income, credit score, and debt-to-income ratio. Based on this information, the lender will give you an estimate of how much money you can borrow to purchase a home. This can help you set a realistic budget for your home search, and avoid falling in love with a house that’s outside of your price range.

In addition to helping you set a budget, prequalification can also give you an edge over other buyers in a competitive market. When you make an offer on a house, the seller will want to know that you’re a serious buyer who can actually afford the home. If you’re prequalified, you can show the seller that you’re a strong candidate for financing, and this may give you an advantage over other buyers who haven’t taken this step.

Prequalification can also help you avoid the disappointment of falling in love with a house, only to find out later that you can’t afford it. By getting prequalified before you start your home search, you can focus on homes that are within your budget and avoid wasting time and energy on properties that are out of reach.

Finally, prequalification can help you move quickly when you find the right house. If you’re prequalified, you can make an offer on a house with confidence, knowing that you’re a serious buyer who can secure financing. This can be especially important in a competitive market, where homes can sell quickly.

Overall, getting prequalified by a lender is an important step in the home buying process. It can help you set a budget, stand out in a competitive market, avoid disappointment, and move quickly when you find the right house. So, before you start your home search, be sure to talk to a lender and get prequalified.