Pre-qualified versus Pre-approved

            Getting pre-qualified is the first step in the mortgage process, with no cost to the customer.   It involves supplying a lender with basic information regarding your debts, income and assets.  From this information, lenders can get an idea of the mortgage amount for which you qualify. 

            Getting pre- approved is the next step.  This process requires you to complete a mortgage application and supply a lender with all the necessary documentation to check your financial background and credit rating.  You will then be told the exact mortgage amount for which you are approved.  The obvious advantage of completing both of these steps before you look for a home is  knowing in advance, how much you can afford to spend.  You won’t waste time looking at properties beyond your means.  The initial pre-qualification stage allows you to discuss with your lender any goals or needs you may have regarding your mortgage.  Your loan officer can then explain your mortgage options and recommend the type of mortgage that might be best suited to meet your needs.  Getting pre- approved for a mortgage also enables you to move quickly when you find the home of your dreams and make an offer that is not contingent upon obtaining financing.  It also lets a seller know your offer is serious and could prevent you from losing out to another purchaser who already has financing arranged.  

            Another great tip from Consumer Mortgage.  Give us a call at 757-552-700 or 1-800-882-0066 and get your financing arranged for your purchase.