|
Pre-qualification
& Pre-approval
| Pre-approval is an
important first step before you begin looking for a home and
it helps you determine how much home you can really afford.
Getting pre-approved requires that he lender verify your
financial information and i serves as a commitment to lend a
specified amount based on that information. This gives
you significant buying power with a seller who recognizes you
will be approved for a loan. |
| What is
Pre-qualification? |
| Pre-qualification is an
informal discussion between borrower and lender. The
lender estimates the amount that you can borrow based solely
on what you tell them about your income and assets. The
lender does no verification and is not bound to make the loan
when you are ready to buy. |
| How is Pre-approval
better? |
| To a seller, a lender's
pre-approval letter is considerably stronger than a
pre-qualification letter. Loan pre-approval is based on
documented and verified information regarding your employment,
your income, your liabilities, your assets and the cash you
have available to close on a home purchase. If a seller
knows your financing is secure, your offer is stronger.
Pre-approval also gives you peace of mind as you shop for a
home, knowing that you will qualify for the proper mortgage
amount. |
BACK
to MORTGAGE OVERVIEW
|
