MORTGAGE & FINANCE INFORMATION You may not have thought about this, but you should be thinking about your finances BEFORE you begin your home search. There are several advantages to becoming Pre-Qualified and even more benefits by becoming Pre-Approved. So you are asking, "What's the difference between Pre-Qualifiying vs. Pre-Approval"? They are basically the same, however the Pre-Approval may give you the edge when it comes to bidding on a popular home. Pre-Qualifying: Becoming Pre-qualified means that you have spoken to a loan officer/lender. They will take some basic information about your income, your debtsand your current assets. The lender then can review your information to determine your loan-to-debt-ratio. This will help them give you a ball park figure for how much home you can afford. This does not guarantee your loan. Pre-Approval: Pre-Approval goes one more step. Not only will the lender require a Loan Application, they will ask for documentation to complete your loan application (example: W2 forms, current pay stubs, etc.) They will request a credit report from any of the major credit bureaus. This will give them the information they need to determine your maximum loan amount, the types of loans you may qualify for and more. Pre-approval allows for Loan Approval by the Lender. Pre-approval may help make your offer stand out if there are several offers on the table because you have guaranteed funding. If you haven't already been pre-approved, you will need to obtain a loan once you've found your dream home. Ask me for a referral. Obviously you want to work with a lender who is easy to work with and who will not hit you with any last-minute surprises or hidden fees. Helpful Links |