How Are Pre-Qualifying And Pre-Approval Different?

 

How are pre-qualifying and pre-approval different?

Pre-qualification is an informal way to see how much you maybe able to borrow.

You can be ‘pre-qualified’ over the phone with no paperwork by telling a lender your income, your long-term debts and how large a down payment you can afford. Without any obligation, this helps you arrive at a ballpark figure of the amount you may have available to spend on a house.

Pre-approval is a lender’s actual commitment to lend to you.

mortgage-preapproval

A Mortgage Pre-Approval is Your Ticket to a Ratified Sales Contract

It involves assembling financial records and going through a preliminary approval process. Pre-approval gives you a definite idea of what you can afford and shows sellers that you are serious about buying.

At First Title & Abstract, Inc. we believe in “Putting You First!”

And we encourage our clients to put first things first, too!

Getting pre-qualified for a loan is a good first step.

But when you get serious and are ready to shop and employ a Realtor, you should obtain a pre-approval letter as this will enhance your chances as a buyer of having your offer to purchase accepted by the seller.