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Pre-Qualification or Pre-Approval

The First Step in Preparing to Purchase a Home!

Before making an offer on a home, your Realtor will probably require either a Pre-Qualification or a Pre-Approval from your lender.  It’s important that you know the difference between the two.

A home loan pre-qualification, is a minimal review of your application and credit report. Your loan officer will take your loan application, either in person or on-line.  After obtaining your credit report, they will review your stated income, the credit report and determine the amount of mortgage that you should be qualified for.  This is a basic review, and just a starting point for you to know how much you should be approved for.  There is no way to be sure of your qualification until you provide written documentation of your income and assets.

A home loan pre-approval takes a home loan pre-qualification one step further. Your loan officer will take your loan application in person or on-line.  If you wish to provide your credit report and your income and asset documentation,  we can determine the loan amount you actually qualify for.  Most people know approximately what their income is, but the income the underwriter will use for qualification may be considerably different than what you might think.  Overtime, non-reimbursed employee expenses, hourly wages, bonus and social security or retirement income may be averaged or increased in many cases.  Once the actual income, credit history and assets are verified through the documentation you have provided, a Pre-Approval can be issued which is much more complete than that pre-qualification mentioned above.

For more information on the home loan pre-approval process, contact Doug Bullwinkel at (800) 636-8910 or email him at:  doug.bullwinkel@academymortgage.com.