Whats the difference between Pre-qualifed and Pre-approved?
Don't make the mistake that you are pre-approved for a home loan just because you are prequalified for a mortgage. There is a world of difference between these two terms. Let me bring some clarity to this.
Pre-Qualified...
Getting a prequalification is the first step before you go looking for homes that you may not be able to afford. This is the step where you supply your lender with a financial picture of yourself, including debit, income and all your assets. Once the lender has this information, he or she can then give you an idea of the mortgage amount that you may qualify for. This can be done online, over the phone or in person. Usually a free service, this is crucial to obtain before looking at real estate for sale.
Pre-Approved...
This would be step #2. Much more information is exchanged with the lender. Here you may be required to pay an application fee. Once you supply the lender with the necessary documentation which may include pay stubs, tax returns and information for the lender so he/she can obtain a current credit rating, you will have a better idea of the specific mortgage amount and the type of loan that may be best for you
Getting mortgage committment...
This is the final step in the process. Loan committment is only issued by a bank when you have been pre-approved by the lender and the specific house has been approved. This means the house will have to be appraised at or above the sales price and no structural problems are present. Once this has been done, at this point, your credit and income will be checked once again to make sure that nothing has changed since the first meeting. Its the final step before closing and is always closer to the closing date on your contract than the date of your offer.
For help in getting a pre-approval contact me.
Don't make the mistake that you are pre-approved for a home loan just because you are prequalified for a mortgage. There is a world of difference between these two terms. Let me bring some clarity to this.
Pre-Qualified...
Getting a prequalification is the first step before you go looking for homes that you may not be able to afford. This is the step where you supply your lender with a financial picture of yourself, including debit, income and all your assets. Once the lender has this information, he or she can then give you an idea of the mortgage amount that you may qualify for. This can be done online, over the phone or in person. Usually a free service, this is crucial to obtain before looking at real estate for sale.
Pre-Approved...
This would be step #2. Much more information is exchanged with the lender. Here you may be required to pay an application fee. Once you supply the lender with the necessary documentation which may include pay stubs, tax returns and information for the lender so he/she can obtain a current credit rating, you will have a better idea of the specific mortgage amount and the type of loan that may be best for you
Getting mortgage committment...
This is the final step in the process. Loan committment is only issued by a bank when you have been pre-approved by the lender and the specific house has been approved. This means the house will have to be appraised at or above the sales price and no structural problems are present. Once this has been done, at this point, your credit and income will be checked once again to make sure that nothing has changed since the first meeting. Its the final step before closing and is always closer to the closing date on your contract than the date of your offer.
For help in getting a pre-approval contact me.
