Get Pre-approved, Not Just Pre-qualified

As your trusted mortgage advisor, my team and I provide you with more than just a loan. It’s part of our continuing service to offer tips that may help when you’re looking to purchase a new home or refinance your home loan.Get Pre-approved, Not Just Pre-qualified

If you’re considering buying a home, then you may already have an idea of how much house you can afford, based on your monthly income.

Why not take the next step and get pre-qualified and pre-approved for a home mortgage loan? Not only will you know your housing budget to the dollar before you start looking for a home, you’ll also have more negotiating leverage because the seller knows you’ve already got a loan virtually in your pocket.

 

Pre-qualification

Pre-qualification acts as a dry run of the loan application process. The mortgage lender will use details you provide regarding your credit, income, assets and debts to arrive at an estimate of how much mortgage you can afford. The whole process can take minutes or a few hours, and is usually free.

A “pre-qual” serves as a great indication to potential sellers of your general creditworthiness.

 

Pre-approval

A pre-approval takes a pre-qualification one step further. The lender will contact your employer, bank, and others to verify your income, assets, debts, and credit history. A letter will be issued stating that your mortgage is approved for a certain amount within a certain timeframe. You may be charged a small fee to cover the cost of your credit reports and your application, which is often refunded at closing.

Gain the Buying Edge

The advantages of pre-qualification and pre-approval are twofold: you’re more attractive to sellers, who needn’t worry that they’ll accept your offer only to have your loan turned down, and you’ll save time when you find a home because the lender will have already completed the necessary qualifying and underwriting steps.

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