For people who want to purchase homes in and around Grand Rapids, there is one concept that you need to get used to. Mortgage pre-qualification will play a hugely important role throughout the home buying process for any Grand Rapids home buyer. What does this term mean to you? In its simplest form, mortgage pre-qualification is the process where you figure out how much money you can borrow to purchase a home. In reality, it’s much more important than that. Pre-qualification can help you set a budget, put in reasonable offers, and choose the loan programs that will help you join the proud group of Grand Rapids home buyers.

Pre-qualification and setting your budget
Before you can buy a home, you have to set a budget. You have to have a figure in mind about how much money you can spend. Mortgage pre-qualification gives you a clear picture of what the bank is willing to lend in your situation. This does not mean that you have to spend this amount on a home. It will give you a good indication of what you can expect to spend in the home buying process, though. With this number in hand, you can begin to search for properties. You can have a real discussion about the sorts of homes you can afford in your price range. This is where reality smacks you in the face in your home buying process.

Which programs are right for you? 
When you get pre-qualified for a home loan, you can start to sort through the various mortgage options out there. People with large budgets have different options than people who are buying with a smaller loan. You will need to carefully research options along with a skilled mortgage professional. Once you get pre-qualified, you’ll have a better idea of what things you should focus your attention on.

Pre-qualification means a more serious home shopping process
Home sellers are often tired of dealing with people who will not commit to purchasing a home. They get lots of soft offers, and people without pre-qualification cannot really be counted on. If you want to move on a house quickly, then pre-qualification is a huge help. When the bank says that they will give you a certain amount of money, you can bid on homes with confidence, and you can gain an edge on home buyers on the most competitive listings.