WHAT IS THE DIFFERENCE BETWEEN A PRE-APPROVAL AND A PRE-QUALIFICATION?
A pre-approval is a full review of your loan application, credit report, and income and asset documentation. A pre-qualification is a less detailed review that typically consists of filling out an application, but you provide little or no documentation to the loan officer. In other words, a pre-approval will let you know exactly how much of a home loan you qualify for whereas a pre-qualification is more of an estimated guess. If a loan officer has not reviewed all of your income and asset documentation, you are not officially pre-approved. As you can see, a pre-approval letter is much more accurate and definitive than a pre-qualification letter!
WHY GET PRE-APPROVED?
Before you even start looking for a home, it is always a good idea to get pre-approved to have a clear estimate of what you truly qualify for and what your monthly payment would look like. Your credit and income play a significant role in what your rate will be. Most real estate agents require a pre-approval letter prior to showing you homes to ensure that you are a fully qualified buyer and that you are successful when making an offer on a property.
The pre-approval process consists of filling out an online application and submitting income and asset documents (i.e. paystubs, W2s, bank statements, etc.) to the loan officer.
I would love to connect you with an amazing lender who will take great care of you and offer you the best finance solutions for "your" needs.
Fill out the lead form below to get started!