Pre-approval and pre-qualification are some of the steps asyou proceed with the home loan process. There is a small difference between the two.
In mortgage pre-qualification, your financial details are provided to a mortgage lender that includes your income, debts, and assets. In return, the lender will provide a tentative evaluation of the loan amount they would lend you.
On the other hand, mortgage pre-approval plays a significant step in the home buying process. Mortgage pre-approval means that the lender has checked the buyer’s financial details and verified the documentation to approve a specific loan amount. Once everything is verified, you will obtain a pre-approval from the lender.
How Pre-Approval Works?
Got a mortgage pre-approval letter from the lender? If so, then you are already the next step forward in the home-buying process.
Our mortgage experts will assist you with your pre-approval process.
Once you and the mortgage professional discuss your financial aspects, such as the mortgage amount and, down payment, you can select which mortgage option best fits your requirements and goals.
Then you will fill the requisite application with the necessary details and the lender will acquire your credit report for further process. Our mortgage expert professional will guide you through the documentation process.
Why is it Important to Get Pre-Approval?
Pre-approval is a good way to move ahead for many reasons. Some of them are:
- Your time is saved as you get to select from those houses only that are within your budget.
- It will be a plus when you have to negotiate with the seller.
- It gives you an outline of your monthly payments and the down payment.
It simply gives you an idea of what your mortgage will cover, the amount, terms, interest, expenses, etc. Contact our mortgage expert for any queries on the pre-approval process or to get one done.