The Loan Process
Before you begin to shop for a new home, you schedule an appointment to meet with me so we can figure out how much you can afford. As a buyer, this puts you in a better position. I will explain the difference between being pre-qualified for a loan and pre-approved for a loan. The difference will be crucial when you decide to make an offer on a house.
To get pre-qualified for a loan, I will collect information about your debt, income, and assets. I will review your credit profile and discuss you goals for a down payment and get an idea of different loan programs that would work for you. I will then present you with a pre-qualification letter indicating the amount you are pre-qualified to borrow.
A pre-qualification letter is just an estimate of what you are eligible to borrow, not a commitment to lend. Getting pre-approved is the next step. Getting pre-approved gives you a competitive advantage when the time comes to bid on a home because you have been approved for a specified amount.
To get pre-approved, I will complete a mortgage application and gather various information verifying your employment, assets and financial status. For example; W-2 forms, bank records and credit card statements. I will review your mortgage options and submit your application. Once the application process is complete you will receive a pre-approval letter indicating the amount you are able to borrow.
A pre-approval letter is not binding; it is subject to an appraisal of the home you wish to purchase and certain other conditions. If your financial situation changes, interest rates rise or a specified expiration date passes, we must review your situation and recalculate the amount you are able to borrow.
