Prequalificaion Vs Preapproval for Mortgage Loan

What is pre-qualification for mortgage loan?

A pre-qualification is normally issued by a loan officer, who, after interviewing you, determines the dollar value of a loan you can be approved for. However, loan officers do not make the final approval. Therefore, even if you pre-qualify, you are not granted a commitment to lend just yet. After the loan officer determines that you pre-qualify, he/she then issues to you a pre-qualification letter. This pre-qualification letter is used when you are making an offer on a property. The pre-qualification letter indicates to the seller that you are qualified to purchase the home you are making an offer on.

What is pre-approval in mortgage loan process?

Pre-approval is a step above pre-qualifying. Pre-approval involves verifying your credit, down payment, employment history, etc. Your loan application is then submitted to an underwriter who makes the final decision regarding your loan application. If you're issued a pre-approval by the underwriter, you are then issued a pre-approval certificate. Getting your loan pre-approval certificate allows you to close very quickly when you do find a home. A pre-approval can help you negotiate a better price with the seller, since the pre-approval is very close to having cash in the bank to pay for the home!

Call a Total Mortgage expert now at 877-868-2503 to find out how we can customize a mortgage loan with some of the lowest current mortgage rates for you.

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