Q U A L I F Y I N G

The SMART way to Shop !

Pre-Qualification:  Why is a simple prequalification alone usually not enough when starting your mortgage search?  A loan prequalification is usually just a best estimate by a loan officer after a brief period of conversation and little gathering of information. This guess assumes all the information you supplied was accurate.  You may even get a prequalification in writing on the lender's letterhead, but the lender is not providing a commitment to lend, that involves going a step further in the process.

Pre-Approval:  A preapproval involves an in depth examination of your credit history, financial situation, and sometimes the property itself.  The lender will independently verify the facts you supplied on your loan application.  They will collect and examine your W-2's (tax returns if self employed), pay stubs, credit report, and your bank and other asset statements.  You should then receive (request if you do not) a written commitment to lend on a specific property.  The only conditions usually present on a lender's preapproval are a satisfactory appraisal of the property, clear title, and proof of homeowner's insurance and flood insurance if required.