Are you pre-qualified or pre-approved for a loan?  Does it matter?  What's the difference?
Before you begin to shop for a new home, you should set up a time to speak with me so we can determine what mortgage payment will fit in your budget. In today's market, it is critical to be pre-approved to buy a home, not just pre-qualified.  Many properties that are bank owned will not accept an offer from you if you are not already pre-approved. Our goal is to maximize your chances of having your offer accepted.

Pre-qualification is no longer enough for a consumer to go shopping to buy a home.  Attractively priced homes sell quickly as the market continues to pick up.  If you are serious about buying a home, you need to be ready to make an offer right away, and being pre-approved will give you a competitive advantage.  It could very well be the difference as to whether your offer is accepted over other offers.  Plus, you'll have the peace of mind knowing that you're already qualified to buy a home in that price range.  This will lower the amount of stress commonly experienced in the home buying process. 

To get pre-approved, all you need to do is complete a simple mortgage application and provide us with various information verifying your employment, assets and financial status such as W-2 forms, most recent 30 days worth of paystubs, most recent bank and asset statements, including retirement accounts.  Once the application is complete, and we've had an opportunity to review income and asset documentation, we’ll run a credit report and an automated approval, typically through FannieMae or FreddieMac, to determine the mortgage amount you qualify for.  Upon approval, we'll issue a pre-approval letter indicating the amount a lender is willing to lend you for your home purchase.

A pre-approval letter is not binding on the lender; it is subject to an acceptable appraisal of the home you wish to purchase, a review of the final fully executed purchase contract, and final review of all income and asset documentation, along with certain other conditions. If your financial situation changes (e.g. you lose your job), interest rates rise or a specified expiration date passes, your lender must review your situation and recalculate your mortgage amount accordingly.