Types
of Agents
How
to Select an Agent
Prequalified
or Pre-Approved
7
Reasons to buy a home
Moving
with Teenagers
How
to Find a Home
50
"Things To Watch"
when viewing a home
9
Types of Loans You Should Know
What
is a Sales Contract
Finding
Quality Inspectors
10
Ways to Ascertain a Down Payment
How
Lenders Approve Loan Applicants
Definitions
of Closing Costs
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Buyers' Resource Section:
The Difference Between Pre-Qualified and Pre-Approved.
Current money lending markets are extremely competitive.
Mortgage lenders must have an informal "measuring stick" in
order to offer their clients a product. In order to establish
your bargaining power with lenders you need to get Pre-Qualified
for a loan. Thus the Pre-qualification is the informal measuring
stick, and Pre-Approval is the final word that ensures you
want to work with this lender. When the lender checks and
approves your credentials, credit, and mortgage load this
is termed a Pre-Approval.
Pre Qualification- Pre-Qualification
for a loan entails sitting down with a representative and
discussing what you can afford given your down payment, debts,
and future mortgage considerations. This meeting in no way
allows the lender to check up on your credit, job history,
etc.
Pre Approval- Pre-Approval is
granted by your lender only upon approval and verification
of your credentials, your income, debt load, credit report,
and more. Some Lenders find the information from your previous
tax returns sufficient. Other requests range from proof of
employment, to the need for a co-signer. The sheer number
of options involved in borrowing the money for your new home
do not allow for all facets to be covered here. Talk to your
Agent for more detailed options for you.
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