What's the difference between
Pre-Qualifying and Pre-Approval?
A pre-qualification is normally issued by a loan officer, who, after
interviewing you via phone or quick review of an online application,
determines the dollar value of a loan you might be
approved for. However, loan officers do not make the final approval, so a
pre-qualification is not a commitment to lend. After the loan officer
determines that you pre-qualify, they will issue you a pre-qualification
letter. Several years ago, a pre-qualification letter was all you needed
to provide along with a purchase offer. However, things are so much more
competitive these days and a simple pre-qual letter falls a bit short,
so I strongly encourage you to take it a step further and get a
pre-approval instead.
Pre-approval is a step above pre-qualification. Pre-approval involves
verifying your credit, down payment, bank statements, employment history, etc. Your loan
application is submitted to an underwriter and a decision is made
regarding your loan application. If your loan is pre-approved, you are
then issued a pre-approval letter (aka Lender Letter). Getting a loan pre-approved
puts you in a much stronger position to submit an offer because the
listing agent and seller can take comfort in knowing you are a solid
buyer with the ability to close quickly once your offer is accepted.
How Can I get "Pre-Qualified"
or "Pre-Approved" for a Home Loan?
Getting pre-approved for a home loan is an essential part of the home
buying process. It helps prevent you from looking at and falling in
love with properties that you simply can't afford. In a very
competitive market like ours where properties go under contract in a
matter of days, you risk not being able to write an offer on a property
because no listing agent or seller will take you seriously. Don't get
left out...simply reach out to either one of my exceptional local
mortgage lenders to start the process today!
What's the difference between pre-qualifying and pre-approval?
Pre-qualification means that the mortgage
lender has reviewed the financial information you have provided and
believes you will qualify for a loan. Pre-approval is the second step in
the loan process, which is a conditional commitment to loan you the
money for a mortgage.
Why is a pre-approval letter better than a pre-qualification letter?
As stated above, a pre-qualification letter
means that the mortgage lender believes you will qualify for a loan
based on the preliminary information you have provided them on the
application whereas a pre-approval is a conditional commitment to loan
you the money for a mortgage. Therefore, if you want to be taken
seriously as a buyer, the pre-approval will carry the most weight.
or help with home financing,
home loans, home mortgage financing, mortgage loans, home financing,
mortgage, Colorado home loans, Colorado mortgages, mortgage rates,
pre-qualifying, pre-approval, FHA, VA, Conventional, current interest
rates & mortgage options - please contact one of my preferred
mortgage loan brokers below who can help you get pre-qualified for a loan.
The companies and contacts below have proven to be outstanding mortgage
brokers who can help with New Home Loans or Re-Financing. There is
absolutely no charge or obligation and is a vital
first step in preparing to purchase a property.
Get Pre-Qualified for a Home Loan
Today!
Preferred Local Mortgage Lenders
* Home
Mortgage Advisors - Deana
Hollstein - 303.818.0522
* Peak
10 Mortgage LLC - Tenby
J. Dahman - 303.478.9126
