11 I guide you in the way of wisdom and lead you along straight paths. 12 When you walk, your steps will not be hampered; when you run, you will not stumble. Proverbs 4 11-12
Pre-Qualify vs. Pre-Approval can be confusing when entering the home buying process. Pre-qualifying gives you, the potential homebuyer the opportunity to take a general look at your finances from a mortgage perspective. It is not a guarantee of approval, or an actual approval. I helps you learn approximately how much home you can afford to buy based on your credit, income, and assets.
Pre-Qualifying is one of the best things you can do for yourself if you are looking to buy a new home. Getting pre-qualified tells your real estate agent and potential sellers that you are seriously looking for a home to purchase. Talking to a loan professional can help you know what you and your family can comfortably afford, guide you if you have been through a bankruptcy or foreclosure, or help you in reestablishing your credit.
Once you know what you can afford you will know the
sales price range of the homes you can look at. This step takes
about 10-15 minutes depending on how much you have to say about your
situation. Once you are pre qualified you will know:
- Your approximate monthly house payment
- Price range of the home you can purchase
- Amount for a down payment or if you qualify for
100%
financing.
- What are your approximate
closing costs
- What kind of loan program that might be good for you based on your wants, needs, and desires
Getting pre-approved takes getting pre-qualified a
little further. In this step you will actually give your loan
officer your pay stubs, W-2's, and asset statements like your bank
statements or retirement account statements. If your loan officer
has not pulled your credit they will during this step. You may even
be asked to sign a full loan application and any additional
paperwork necessary to get your file
underwritten.
During the underwriting process, your loan officer will verify all of
the information that you gave them in the beginning. They will then
submit your personal financial and credit information to
underwriting to determine if you qualify for the mortgage or
not. At this point, unless you have a property picked out, the loan
officer will most likely make up an address and a sales price that
matches either your payment comfort level or what they think that
you'll qualify for.
An underwriter will look at your loan and credit
paperwork and give you a thumbs up, or a thumbs down about being
approved. More often than not, no matter whether you get an approval
or a denial you will get information or recommendations - we in the
business call these either conditions or stipulations - for what is
needed to get you a mortgage. Your loan officer should also tell you
what you need to do to qualify.
Copyright Pilgrim Properties 2010. All information is deemed reliable and correct but not warranted.. This Website does not engage in mortgage funding or origination. This website provides information to mortgage lenders based on a submitted "apply" form completed in part or in whole at the discretion of the user. Dissatisfaction of the user may only be remedied by seizing to use this website.
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Interested in finding out more about your mortgage options? Click Below.
RENT TO OWN Options that may help you get into the home of your choice while giving you time to explore mortgage options. The Only 100% Financing Option Available. For More Information: Financing Available for Home Renovations and Improvements. Refinancing or Purchase Up to An Additional $35,000.
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