Are you just pre-qualified or fully pre-approved for a loan?

Before you begin to shop for a new home, you should set up a time to meet with me so we can figure out how much you can afford. This will put you in a better position as a buyer. Thats also when it is important to understand the distinction between being simply pre-qualified for a loan, or being fully pre-approved for a loan. The difference between the two terms will be crucial when you decide to make an offer on a house.

Use our FREE FICO score estimator  to get idea of what you credit score is.

To get pre-qualified for a loan, I will collect information about your debt, income, and assets, usually over the phone. Well look at your credit profile and assess goals for a down payment and get an idea of different loan programs that would work for you. It is important to understand that pre-qualification is just an estimate of what you are eligible to borrow, not a commitment to lend.

Click here to learn how to Avoid the #1 Home Buying Mistake

To get pre-approved, you will complete and sign a full mortgage application and actually provide me with copies of various information verifying your employment, assets and financial status such as pay stubs, W-2 forms, and bank statements. Well review your mortgage options and submit your application to underwriting. Once the application process is complete you will receive a pre-approval letter indicating the amount your lender is willing to lend you for your home.

Getting fully pre-approved for a loan gives you a competitive advantage when the time comes to bid on a home because you have been approved for a loan for a specified amount.