Pre-Qualification vs. Pre-Approval by Jane Herro
Sep 02, 2016 home buying,jane herro,loan,mortgages,pre approval,pre qualification,real estate
With how quickly places go in the NYC real estate market, it is important to have all your ducks in a row if you’re serious about buying. Without good preparation, many buyers get lulled into the mistaken notion that if a lender pre-qualifies them for a mortgage this means that they have been pre-approved for a home loan.
With a pre-qualification, the lender can give you a ballpark amount for which you might expect to be approved, only based on the information you have given. To be pre-approved, you’ll be asked to complete an official mortgage application and supply the lender with additional documentation. The lender will then run an extensive check on your financial background and credit rating. Before beginning the exciting process of buying, make sure to have this pre-approval letter on hand-your budget may be lower or higher than you expected!