Pre-Qualification or Pre-Approval and Mortgage Commitment

There are 3 basic stages in mortgage financing... 

1.  Pre-Qualification

2.  Pre-Approval

3.  Mortgage Commitment

Understand the difference between Pre-Qualifed and Pre-Approved or Commitment...

When inquiring for mortgage financing you may be Pre-Qualified or Pre-Approved.
A Pre-Qualification can take place over the phone or on the Internet in a few minutes.
But a Pre-Qualification does NOT mean approved or constitute a commitment to lend! 

Pre-Qualification is simply an undocumented opinion acknowledging your statements.
It relies on what you state about your income, assets, liabilities and credit rating. 

Pre-Approval takes the qualification process one step further - verification.
We verify your credit, income, assets and liabilities and provide an approval.

Make sure to be Pre-Approved before you start looking for a home.

Being Pre-Approved will:

1. Save you from previewing properties outside your price range.
2. Put you in a stronger negotiating position with the Seller.
   Most Sellers and Realtors will require a Pre-Approval.
3. Help you close quickly, since your loan is Pre-Approved.
   

Mortgage Commitment or Final Loan Approval

After verifying your personal information we then look at the subject property:

• Property Appraisal to verify the value of the property 
• Title Commitment to determine the liens or clouds on the property
• Paid receipt for Hazard Insurance (1-Year)
• Plot of Survey may be necessary as well 

Do's and Don'ts for Loan Approval

There are various actions that can adversely affect your Pre-Approval:

• Do continue to pay all your bills on time - including an existing mortgage.
• Do NOT make any major purchases or add to credit card balances.
  Do not buy a car, furniture or another house until your loan is closed.
• Do NOT open any new accounts or have your credit pulled. 
  Any increase in your debts might have an adverse affect on your application.
• Do NOT move money into your bank accounts unless it can be traced.
  If you are receiving money from friends, family or others, please contact me.
• Do NOT quit your job or change employers without notifying me first.

Get your FREE Pre-Approval today!