Are you pre-qualified or pre-approved for a loan?
Before you begin to shop for a new home, you should set up a time to call me so we can figure out how much you can afford. This will put you in a better position as a buyer. That’s when it is important to understand the distinction between being pre-qualified for a loan and pre-approved for a loan. The difference between the two terms will be crucial when you decide to make an offer on a house.
To get pre-qualified for a loan, I will collect information about your debt, income, and assets. We’ll look at your credit profile and assess goals for a down payment and get an idea of different loan programs that would work for you. I will issue you a pre-qualification letter indicating the amount you are pre-qualified to borrow.
It is important to understand that a pre-qualification letter is just an estimate of what you are eligible to borrow, not a commitment to lend. Getting pre-approved for a loan gives you competitive advantage when the time comes to bid on a home because you have been approved for a loan for a specified amount, and you can give a copy of your letter to your Realtor and any prospective Seller, which help strengthen your negotiation.
To get pre-approved, you will complete a mortgage application and provide me with various information verifying your employment, assets and financial status such as W-2 forms, bank records and credit card statements, if those are needed for your loan program. I’ll review your mortgage options and submit your application to the lender that best meets your needs. Once the application process is complete you will receive a pre-approval letter indicating the amount your lender is willing to lend you for your home.
A pre-approval letter is not binding on the lender; it is subject to an appraisal of the home you wish to purchase and 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.
Call & Let's Get Started,
Personal Loan Broker
NorthWest Funding Group
"Helping You find Low Priced Home Loans in Washington and Oregon"
Explanation of the words Wholesale Priced Loans; as a wholesale mortgage broker, I am approved to obtain loans from wholesale 'only' lenders (not open to the general public). The rates I can obtain will be as low as possible by my efforts to best serve my clients, and will usually be far less than the high Retail pricing available to consumers through Retail Banks and Credit Unions. If you have further questions, please don't hesitate to call...Thank you!