Mortgage Pre-Qualification versus Pre-Approval

How to get pre approved for a mortgage. First, its good to know that Mortgage pre-qualification and pre-approval are two terms that are often confusing to home buyers, so here’s what you really need to know about each one.

Mortgage Pre-Qualification

How to get pre approved for a mortgage. A mortgage loan pre-qualification is simply an estimate of how much house you can afford and how much money a lender would be willing to loan you. So, the best time to get a pre-qualification is right at the beginning of your home buying process.

This involves talking with a lender and providing information on your income, assets, debts, and a potential down payment amount. Next, the lender would then provide you with a ballpark figure in writing of how much they think you could afford to pay for a monthly mortgage. There is no cost involved, no credit report pulled and no commitment on either side. This estimate is helpful to you in seeing if buying a home is a viable option, and if so, what your price range would probably be.  If you want to know how to get pre approved for a mortgage, you can start by completing the pre-qualification form above.

How to get pre approved for a mortgage

Receiving a pre-approved is good because it means that you have a tentative commitment from a specific lender for mortgage funding. In this case, you complete a loan application, credit check and work to verify all your employment and financial information. Once you are approved, the lender will give you a letter of commitment. This will state how much money they are willing to lend you for a home purchase. So with a pre-approval in hand you can start your shopping. Real estate agents and sellers will take you much more seriously when they see you have your mortgage funding in place.

In conclusion, understanding affordability of a home purchase will help you make smart financial choices.  Sign up for a class to see how all the numbers work in a pre-qualification.

This pre-qualification tool is not an offer to enter into an agreement. Not all customers will qualify. Information, rates, and programs are subject to change without prior notice. All products are subject to credit and property approval. Not all products are available in all states or for all dollar amounts. Other restrictions and limitations apply. This site is not authorized by the New York State Department of Financial Services. No mortgage solicitation activity or loan applications for properties located in the state of New York can be facilitated through this site. Washington Consumer Loan Company License No. CL-15622. Consumer NMLS (https://www.nmlsconsumeraccess.org/)