Pre-qualified is just a discussion you have with your lender and it is usually done over the phone. Based on the information you provide to him he could guide you in the different types of loans available to you and he will give you an idea of how much you can afford. This does not include an analysis of your credit report.
When you are serious about finding and buying a home a pre-approval letter will show the potential seller that you are serious and can afford the home. Getting pre-approved is when the lender runs your credit report and check your financial background. Be ready to provide some documents like proof of income or W2 forms, copies of your tax returns for the last two years and copies of your bank account statements for the last three months. Just keep in mind that every mortgage program, individual lender and underwriter is likely to have their own requirements and forms.
Armed with a pre-approval letter will put your offer on top of others because they know that a trouble-free settlement is virtually assured.
If you work with me I can help you get a ZeroPlus loan offered by Keller Mortgage – This type of loan will save buyers thousands of dollars because they won’t have to pay any lender’s fees. On a typical $500,000 home the saving could be up to $7,500.
Posted in: FAQ for Buyers