One of the first steps in the process of buying real property is to determine a budget and secure a mortgage. Fortunately, you will have at your disposal highly qualified mortgage professionals who can guide you along the way. With your knowledge and their expertise, your transaction will go smoothly. It’s very important that the lender you select be knowledgeable and responsive because even the smoothest transaction can run into obstacles and when that happens, you’ll want the best in your corner. Most clients ask me to recommend a mortgage lender, and I do, based on a long history of successfully working with them.

You won’t go wrong with these mortgage professionals:

The Difference Between Prequalification and Preapproval

Two very different words used in the mortgage industry. When applying for a home loan, knowing the difference between these two terms can save you time and headaches.

Prequalification: Prequalification is an unofficial estimate of how much house you can afford. An educated guess will be made based on your verbal or written submissions of income, finances, and credit history. Your credit may, or may not be pulled during this evaluation. Your debt-to-income ratio will be calculated and a letter of prequalification provided stating how much you should be able to borrow. The prequalification is based on vague figures and does not take into account all your financial factors. The main benefit of prequalification is getting a general idea of how much you can afford to spend on a home.

Pre-approval: Pre-approval on the other hand carries a lot of weight. In order to be pre-approved for a loan you must sit down with the lender and provide documents such as tax returns, bank statements, etc. These will be analyzed with other information gained from your employer and pulling your credit report. A pre- approval letter will then be produced that certifies that you have the resources to afford to buy a home for a certain amount. The pre-approval letter will usually specify the interest rate you will pay for borrowing such sum. Sellers love buyers who are pre-approved because it is proof that the buyer has financial backing and are prepared to pay the required amount.