Differences between a prequalification and a pre-approval can be the difference between you owning a new home, and you still trolling the internet and dreaming about it. Find out what you need to know about 3 types of lending approvals below and check out my video for additional information and details.
The Pre-Qualification process is an optional step with the lender at the start of the buying process to see how much house you can afford.
What You Need: A Realtor and mortgage professional..
The Pre-Approval (to present with an offer ) is pretty high on the importance meter. Your lender analyzes your credit, finances, employment history, other sources of income, etc. to determine loan ability.
What You Need: Employment history, at least 2 years. Tax records, also 2 years’ worth, and social security numbers to conduct a credit check. If you have investment and savings accounts be prepared to provide financial statements at some point in the process.
Fully Underwritten Loan Approval the final step in your loan approval process! This is pretty much the most important step in obtaining a loan! The pre-approval likely had qualifiers or “conditions”, the lender will follow up with these items with you and then you will be at optimal positioning to make an offer and also compete within a multipl offer situation.
What You Need: Patience and cooperation!!!