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  1. FHFA Conforming Loan Limits 2019
  2. How 2018 Market Trends Will Affect Wisconsin Buyers
  3. No Money Down Home Loans Appleton Oshkosh Green Bay Wisconsin
  4. Benefits of using FHA for your home loan
  5. Benefits of being a homeowner
  6. Wisconsin local lender vs online lender
  7. Home Loan Pre-Approval
  8. No Money Down Home Loan
  9. Serve and Support Loans
  10. Debt Consolidation and Cash Out

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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
rmeyer@gogsf.com
NMLS #222688 & 1018