Types of Agents
How to Select an Agent
Prequalified or Pre-Approved
7 Reasons to buy a home
Moving with Teenagers
How to Find a Home
50 "Things To Watch"
when viewing a home
8 Types of Loans You Should Know
What is a Sales Contract
Finding Quality Inspectors
10 Ways to Ascertain a Down Payment
How Lenders Approve Loan Applicants
Definitions of Closing Costs
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The Difference Between
Pre-Qualified and Pre-Approved.
The current mortgage market is extremely competitive. Lenders
must have an informal "measuring stick" in order to offer their clients
a product. In order to establish your bargaining power with home sellers,
buyers need to get Pre-Qualified for a loan. Thus a Pre-qualification
is the informal measuring stick. Pre-approval is the lender's commitment
that they can offer the mortgage, subject to a specific property.
Pre-approval is subject to a lender check. *
Pre Qualification- Pre-Qualifying for
a loan entails sitting down with a lender and discussing what you
can afford given your down payment (if necessary), debts, and future
mortgage considerations. This meeting in no way allows the lender
to check up on your credit, job history, etc. without you signing
the authority to do so.
Pre Approval- Pre-Approval is granted
by your lender only upon approval and verification of your credentials,
your income, debt load, credit report, and more. Some Lenders find
the information from your previous tax returns sufficient. Other requests
range from proof of employment, to the need for a co-signer. The sheer
number of options involved in borrowing the money for your new home
do not allow for all facets to be covered here. Talk to your Agent
for more detailed options for you.
* checking income, assets, credit responsibilities, etc. |
