How to buy: What does being pre-qualified mean?

We know that buying a new home can often be a stressful time, full of processes and phrases that you’re not familiar with. That’s why we launched our How to Buy blog, to help you with every step of the journey.

So what does being pre-qualified mean?

Being pre-qualified simply means that you have spoken to one of our independent mortgage advisers at Mortgage Bureau and they have asked you questions that will determine whether you should be able to obtain a mortgage or not. Your adviser will also run a credit check based on the information you give which, again, will give you peace of mind as to whether your credit history is likely to enable you to qualify for a mortgage.

The questions are nothing to worry about, they’re just a way of determining how much money you can borrow from the bank or building society and therefore how much deposit you will need to buy your chosen home. It’s a really useful conversation for anyone looking to buy a new home as it means you can find out exactly what kind of house you can afford.

Working closely with independent mortgage advisers is an easy and stress free way to find the mortgage that suits you best. They are able to check with lenders from the whole of the market to see who will offer you the best mortgage rate, meaning they do all the hard work and will even help guide you through the questionnaire process. Even better, the conversation is completely free of charge so there really is nothing stopping you.

Here’s some of the information you’ll need to hand before speaking to the financial advisor:

·         The price of the property you wish to purchase (or a guide price)

·         The amount of your monthly incomings (your salary after tax and National Insurance)

·         The amount of your monthly outgoings (this includes household bills, rent or mortgage payments, Council Tax, childcare costs, gym membership, phone bills, beauty treatments and any other regular payments that you make)

·         An idea of the amount of deposit you want to put into the property

Helen Pierson from Mortgage Bureau said: “Being pre-qualified is a great position to be in as a home buyer as it means you can be more confident that you should be able to proceed with your purchase. The conversation is completely confidential and takes place over the phone at a time that is convenient to you. It also gives you a chance to ask any questions you might have relating to your house buying process.”

Anyone looking to purchase a new home at one of St. Modwen Homes’ developments who wishes to get pre-qualified should speak to a member of our sales team who will organise for a financial advisor at Mortgage Bureau to get in touch. 

For more information about St. Modwen Homes visit www.stmodwenhomes.co.uk or click here.