Are you PreQualified or PreApproved?

The difference between the two terms will be crucial when you decide to make an offer on a house.

Before you begin shopping for your new home, we highly recommend meeting with one of our Mortgage Specialist.  Our mortgage professional are trained to assist you in establishing  your property-value guidelines and personal objectives before you start your search.  While this step was once seen as an option, in today's competitive real estate environment, overlooking this crucial step could actually disqualify you as a prospective buyer. 

To get Pre-Qualified for a loan, we will collect information about your debt, income, and assets. We’ll review your credit profile and assess your available down payment resources.  We will also give you an idea of different loan programs that will be available to you. After that short interaction we will issue you a Pre-Qualification letter indicating the amount you are Pre-Qualified to borrow.

It is VERY important to understand that a Pre-Qualification letter is just an estimate of what you are eligible to borrow, not a commitment to lend. Getting PreApproved for a loan gives you a competitive advantage when the time comes to bid on a home.  The reason for this advantage is that the seller does not have to guess if you can really buy their home, rather then know that you have actually been approved for a loan for a specified amount.

To become PreApproved, you will complete a thorough mortgage application and provide us with various information verifying your employment, assets and financial status.  We will need such items as W-2 forms, bank records and investment account statements. We will then review your mortgage options and submit your application to the investor that most closely meets your individual needs. Once the application process is complete you will receive a PreApproval or Notice of Loan Approval (NOLA) letter indicating the amount we are able to lend you for your new home.

A PreApproval letter is subject to a satisfactory appraisal of your new home as well final underwriting conditions. If your financial situation changes (i.e. you lose your job), interest rates rise or a specified expiration date passes, we as your lender must review your situation and recalculate your mortgage amount accordingly.

In conclusion, in order to remain competitive and be the offer of choice when a seller is considering multiple offers - you NEED to be PREAPPROVED.  We can help – call us today at 407-388-1036 or toll free 1-866-388-1036!