Getting Pre-Approved for your loan

Pre-Approval

As a buyer, becoming pre-approved for the purchase of a home is essential if you want to spend your time wisely. If you’re pre-approved for a mortgage loan, then you know exactly what price home you can buy. Pre-approval is different than pre-qualifying and the difference is important. Pre-approval means a buyer has gone through the credit and full verification process of a mortgage lender, and the lender is ready to write the check. A pre-approval is a lender's firm commitment on a loan.

This lets you to enter into negotiations with the seller with confidence. Pre-qualify simply means that certain financial data has been provided to a lender and based on the information provided, a buyer should be able to afford a home in a determined price range, but nothing has been verified as to the true credit-worthiness of the buyer. A pre-approved buyer is gold to a home seller. It’s the best position a buyer can be in when negotiating a home purchase.

Pre-approve vs. Pre-qualify / How much can I afford? / Mortgage Calculator