- 2019 Posts

  1. Is It Time to Refinance? Here Are The Steps You Need to Take
  2. Saving For Your First Home? Here’s Everything You Need to Know
  3. Options, Options, Options
  4. A Personalized Approach
  5. Credit Confusion
  6. Building Your Dream Home
  7. Tax Time in Wisconsin
  8. Don’t Let Intimidation Get in the Way of Home Ownership
  9. Setting Financial Goals for the New Year
  10. Buying a home after bankruptcy

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Pre-Approval and Pre-Qualification Differences

May 24, 2017

Today let's talk about the difference between a pre-approval and a pre-qualification for a home loan. GSF helps our clients through the process, and we even offer a Finance First Program where your loan information is looked over by an actual underwriter, to help you avoid any surprises during the home buying process. We also offer a free appraisal if you have an accepted offer within 30 days of submitting your information for pre-approval.


So what's the difference?


A pre-qualification is an easy process. It usually involves a conversation either in person or over the phone with a mortgage lender. They gather your information, such as income and debt estimates. After evaluating this information, a lender can give you an idea of the mortgage amount for which you may qualify for. Loan pre-qualification does not include an analysis of your credit, or an in-depth look at your financial ability to purchase a home. Many perspective home buyers are confused by this, and think they are pre-approved to buy a home. This can cost the home buyer valuable time, and sometimes even their dream home.


Pre-approval isn't as scary and overwhelming as it sounds, it's actually pretty simple. The home buyer supplies a mortgage lender with the necessary documents, usually in a face-to-face meeting. Paystubs and W-2s are some of the documents that need to be provided in order to be pre-approved for a home loan. Remember, a pre-approval is not a commitment to lend, but can certainly speed up your financing.


Being pre-approved before looking for homes can help the home buyer be aware of what price home they can afford, as well as helping the realtor assist the buyer in preparing a much stronger offer. Home sellers are much more receptive to offers that are accompanied with a pre-approval letter for a mortgage. This not only tells them you have your affairs in order but that you are serious about buying their home.



Ron Meyer
GSF Mortgage Corporation
300 Patriot Dr.
Little Chute, WI 54140
(920) 788-9608
NMLS #222688 & 1018