Pre-Qualification is an informal way to see how much you might be able to borrow for your new home. You can get “pre-qualified” over the phone with no paperwork by telling a lender your income, your long-term debts, and how large a down payment you can afford. The lender will not make a commitment to lend to you based on this unverified information, but you will have a ballpark figure for how much you can spend on a house.
Pre-approval is a lender’s actual commitment to lend to you. The process involves assembling our financial records (checklist) and going through a preliminary approval process that can take up to a couple of weeks.
Why Get Pre-Approved?
Pre-approval provides you a definite idea of what you can afford and shows sellers that you are serious about buying. In addition to documenting your financial ability to close on a transaction, pre-approval shortens the time needed to close on a loan, and makes you a more attractive buyer for sellers who want a quick and efficient escrow.
Don’t know where or how to start the pre-approval process? Don’t worry.
Tell me a little about yourself and we can help you get started. We have trusted mortgage professionals of the highest caliber on our team! Please visit the Preferred Lender page for more information!