Pre-Qualification & Pre-Approval

Mortgage pre-qualification

 

 

“Click Here” to get started with the pre-qualification process right away. This process will only take a few minutes to complete.

One of the most important steps in the home buying process is securing a pre-qualification or pre-approval. Most buyers skip over this very important step and will start looking for a home before ever getting pre-qualifed. In fact, an experienced Real Estate Agent will not even work with a buyer without being pre-qualifed first. A mortgage approval is generally the longest contingency to satisfy in a purchase contract, it is to your advantage to obtain a pre-qualification or a pre-approval letter as soon as you’re ready to begin your search.

To review a complete list of the required financial documents “Click Here”

The Difference between Pre-Quailication and Pre-Approval

Pre-Qualification

A pre-qualification is the process in which a mortgage loan officer reviews the income, employment, debts, assets, credit history, funds available for a down payment and closing cost provided by the potential borrower.

From this information, the mortgage loan officer is able to confirm the amount and type of loan available to the borrower. The borrower may request a pre-qualification letter, which provides you with an understanding of your lending capabilities.

Pre-Approval

When purchasing a home, it can be advantageous to get pre-approved for a mortgage.

A pre-approval takes the pre-qualification process one-step further. A loan application must be completed, which is not required in order to be pre-qualifed. The mortgage lender will review the following information: loan application, employment, income, debt, assets, confirmed funds available for down payment and closing costs. A credit report will be run and the borrower may request a pre-approval letter which is subject to additional documentation and property approval.

Please note that a pre-qualification or pre-approval does not constitute a loan approval. These approvals are based on information provided by you. Once a property is selected a comprehensive analysis of your credit history, income, debts and property selection may be required again to provide a final loan approval.

To review a complete list of the required financial documents “Click Here”

The Advantages of a Pre-Quailication and Pre-Approval

Save Time by Looking and Examining the Right Home

If you are already working with a real estate agent and receiving automatic listing on available homes, you can ask them to change the parameters to focus your efforts on homes that you are genuinely afford to buy. If you are not working with the a real estate agent I highly suggest you work with a professional. It would be in your best interest. I would be glad to put you in touch with an experienced real estate professional. By decreasing the inventory of homes to those that fit you parameters, you can spend more time thinking about the differences each home has to offer. Lots of home buyers never move past the price point, but now you can devote your energies to looking at the little things that matter to you the most such as whether your furniture can fit in the rooms or there is enough closet space for your belongings. Most MLS systems allow an agent to send clients much of the same data that agents receive. This way, you’ll save time by checking out homes you can actually afford to buy instead of falling in love with a pie in the sky.

Gain Confidence and Avoid Disillusionment

Now when you find that perfect home, nobody can take it away from you by telling you that you do not qualify to buy it. You can minimize anxiety and remove last-minute loan surprises hay could disqualify you. You’ll sleep better at night knowing that the home you selected is yours.

Sellers entertaining multiple offers may pay more attention to offers submitted by pre-qualifed buyers. Sellers will be more likely to immediately accept your offer, even if that offer is for less than list price, because you are giving the seller peace of mind that their home is sold. They can take their home off the market with confidence. The sellers know that these buyers have taken the time to shop for mortgage financing and that the sale may close faster.

Planning for Extra Cost

If you’re buying your first home it can be easy to overlook additional costs of homeownership. By pre-qualifed for your mortgage, you’ll have an idea of what your mortgage payments will be and can plan for home maintenance and repairs, lawn care, and additional utility costs.  The amount you pre-qualify for is the maximum mortgage amount you can borrow; by considering homes requiring a lower mortgage, you can budget to allow for extra costs associated with owning a home.

Streamline the Loan Process and Prepare for the Closing

Pre-qualifed buyers have established a relationship with a mortgage lender and know what to expect in terms of qualifying for a mortgage. Although pre-qualifying doesn’t eliminate the possibility of delays before closing, it can reduce the possibility of “surprises” involving your ability to get the mortgage you need. Being pre-qualifed allows the lender to speed up the entire processing procedure. It’s possible to shorten a 30-day closing to two or three weeks, which comes in handy if a seller needs to quickly move and can’t decide which offer to accept. Yours will move to the front if you can accomplish the seller’s need to quickly close.

The home buying process can seem complex but with the help of an experienced loan officer, you’ll learn how easy the journey can become. My team and I will cover topics with you such as; reviewing your financial overview, credit, short and loan term goals; all to determine the best loan program for your situation. We will also go over and make sure you understand the loan process.

What are you waiting for? Get pre-qualifed today! You are one step away from starting the pre-qualification process which will only take a few minutes to complete. Jason and his mortgage team are committed to providing a simpler processes, more financial choices and the kind of service that makes home financing easier for everyone.


Thank You and Look Forward to Assisting You with Your Home Buying Needs!

To review a complete list of the required financial documents “Click Here”

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