Before you get a mortgage, prequalify. This will benefit you, your agent, and the seller from whom you will eventually buy a house. Prequalifying for a mortgage lets you know exactly how much house you can afford, thereby simplifying your search.

There are other ways you'll benefit from this type of application for a mortgage. Prequalify and get preapproved and you will have a clear sense of direction about where you are headed. It's also the first step toward a formal mortgage application.

Mortgage Prequalify: Then Be Preapproved

Sellers benefit also from buyers who are prequalified for a mortgage. To a seller, who looks better when there is an offer on the table: A prequalified buyer, or a buyer who has no idea if s/he will even be approved for a mortgage? Prequalify and you will have more attention from the seller, even if your offer is slightly less than the competition's.

Remember that the amount for which a lender prequalifies you is the maximum you can afford. It's best not to push the limits of your wallet when buying a house. This way, you will be sure to be able to afford the house you do choose, if you stick to the parameters set by the lender.