What does it take to Pre-Qualify for a home loan?
There is a HUGE difference between a Pre-Qualification and a Pre-Approval. As a mortgage banker, when I do a Pre-Qual, I do a credit check but not every lender does this so make sure you ASK! A Pre-Qualification is a lender’s estimate of how much you will qualify for based on the information that you provide, that information is not typically verified and will not take into consideration important details that could very well impact your actual approval and ultimate ability to purchase the house of your dreams. During a Pre-Qualification, your loan officer will simply ask you how much income you are earning, how much money you have in the bank to use as a down payment, how much money will remain in savings and what your monthly debts and liabilities are. For some people, such as W2 wage earners or hourly employees, these are fairly straight forward questions but for borrowers who are self-employed, retired or earn bonus or commission income or overtime income, the number in your head could be drastically different than the income an Underwriter will allow you to use when qualifying for a home loan.
What does it mean to be Pre-Approved?
A Pre-Approval, on the other hand, involves and in depth credit analysis, your income and asset documentation are reviewed and any additional documentation that may impact the process will be requested, reviewed and explained thoroughly. Make SURE that you are fully pre-approved before you make an offer on a home. I recommend that my clients allow me to do a full Pre-Approval for them prior to even starting their new home search. It will save you time, money and heart ache… There is certainly a lot more up front work involved in getting fully Pre Approved but this is an important step in the home buying process.
Put yourself in the best possible position for success!
As the market becomes more aggressive and competitive, sellers are demanding Pre-Approval vs. Pre-Qualification letters and smart real estate agents have been requesting the same for years. Most successful realtors will ask that you complete the Pre-Approval process prior to starting your home search process. Why waste time and emotion viewing a property that is outside of your comfortable and finance-able reach? Do yourself a favor and make sure you are working with someone who will take the time to go through this process with you. Academy Mortgage specializes in new home purchases and I can assist in Pre-Approving you for a vast array of home loan products. From FHA to Conventional to Renovation loans, we will tailor and custom fit to meet your needs.
To get Pre-Approved today, please give me a call or send me an email. My direct line is: (503) 453-6849 and my email address is: Kahren.Oxner@academymortgage.com
I look forward to helping you purchase your new home!