Are you pre-qualified or pre-approved for a loan?
Before you begin to shop for a new home, you should set up
a time to meet with me so we can figure out how much you can
afford. This will put you in a better position as a buyer.
That’s when it is important to understand the distinction
between being pre-qualified for a loan and pre-approved for
a loan. The difference between the two terms will be crucial
when you decide to make an offer on a house.
To get pre-qualified for a loan, I will collect information
about your debt, income, and assets. We’ll look at your
credit profile and assess goals for a down payment and get
an idea of different loan programs that would work for you.
I will issue you a pre-qualification letter indicating the
amount you are pre-qualified to borrow.
It is important to understand that a pre-qualification letter
is just an estimate of what you are eligible to borrow, not
a commitment to lend. Getting pre-approved for a loan gives
you competitive advantage when the time comes to bid on a
home because you have been approved for a loan for a specified
amount.
To get pre-approved, you will complete a mortgage application
and provide me with various information verifying your employment,
assets and financial status such as W-2 forms, bank records
and credit card statements. We’ll review your mortgage
options and submit your application to the lender that best
meets your needs. Once the application process is complete
you will receive a pre-approval letter indicating the amount
your lender is willing to lend you for your home.
A pre-approval letter is not binding on the lender; it is
subject to an appraisal of the home you wish to purchase and
certain other conditions. If your financial situation changes
(e.g. you lose your job), interest rates rise or a specified
expiration date passes, your lender must review your situation
and recalculate your mortgage amount accordingly.
F.A.Q
We offer a wide range of services including real estate sales,
financing, and property management. Call us today for a free
consultation @ 916-482-6899 or email us at fay@amerpropmgmt.com.
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