Loan Prequalification & Proof of Funds
Understanding your buying power before you start touring homes gives you confidence and a competitive edge.
Good to Know
You don't need to memorize everything on this page.
My job is to guide you through each step when the time comes, explain everything in plain English, and help you make informed decisions with confidence.
Why This Matters
It's tempting to start looking at homes immediately, but establishing your financing is one of the most important first steps in the home buying process.
Whether you are obtaining a mortgage or paying with cash, knowing exactly what you can comfortably afford helps us focus our search on homes that truly fit your budget and lifestyle.
When we find the right home, having your Arizona Pre-Qualification Form or Proof of Funds ready shows sellers that you are a serious, prepared buyer.
How It Protects You
- Prevents Heartbreak: Looking at homes outside your comfortable price range can make it harder to appreciate homes that fit your budget.
- Strengthens Your Offer: Sellers are more likely to accept an offer accompanied by a solid Pre-Qualification Form from a reputable local lender.
- Clarifies Monthly Costs: A lender will break down your estimated monthly payments, including taxes and insurance, so there are no surprises.
Documents You'll See
Understanding the paperwork involved in proving your purchasing power.
Arizona Pre-Qualification Form (Pre-Qual)
What is this document? A standard form used in Arizona real estate, completed by your lender, stating that they have reviewed your financial information and you are qualified for a loan up to a certain amount.
Why am I receiving it? To include with any offer we submit on a home.
When will I see it? After you have spoken with a lender and they have reviewed your credit, income, and assets.
How does it help protect me? It clearly outlines the type of loan you are getting and any conditions that must be met, ensuring everyone is on the same page.
What questions should I ask? Ask your lender if they have reviewed your actual documents (W-2s, bank statements) or just relied on verbal information. A fully documented pre-qualification is much stronger.
Proof of Funds (POF)
What is this document? A bank statement or letter from your financial institution showing you have the liquid cash available to purchase the home and cover closing costs.
Why am I receiving it? Required if you are making a cash offer, or to prove you have the funds for your down payment.
When will I see it? You will need to request this from your bank before we submit an offer.
How does it help protect me? It proves to the seller that your offer is legitimate and you have the means to close the transaction.
What questions should I ask? Make sure to ask how to safely redact account numbers while still showing your name and the balance.
🎥 Prefer to Watch Instead?
A short DeDe Explains video will soon be available for this topic.
These videos are designed to explain Arizona real estate in plain English so you can better understand the process before making important decisions.
Source of the Source
One of my goals is to help you become an informed homeowner.
Whenever possible, I encourage my clients to review original documents, visit official websites, ask questions, and continue learning.
My role isn't to replace those resources.
My role is to help you understand what you're reading, explain things in plain English, answer your questions, and connect you with trusted professionals when additional expertise is needed.
Frequently Asked Questions
Questions Are Always Welcome
Buying a home comes with lots of moving pieces, and you're never expected to know everything.
If something doesn't make sense, ask.
One of my favorite parts of my job is helping people understand the process so they can make informed decisions with confidence.
Real estate is only one chapter of your story.
My job is to help you build a life you'll love.
