Ralph Waldo Emerson once said that the future belongs to those who prepare for it. This is sage advice for home buyers who need to lay the necessary groundwork to buy the home of their dreams.
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. While these terms are often used interchangeably, there is a substantial difference in their meanings. Here are the basics of pre-qualification and pre-approval.
Getting pre-qualified is the initial step in the mortgage process, and it’s generally fairly simple. It is an informal process in which you are interviewed by a mortgage professional about your income and expenses. This gives you a general idea of the price range you can afford.
When you are pre-approved for a mortgage, it means that a lender has looked closely at your credit report, your employment history and your income and has then determined which loan programs you qualify for, the maximum amount that you can borrow, and the interest rates you will be offered.
Desert Heritage REALTORS® work closely with a team of mortgage professionals to help you through the loan approval process. Contact us today by simply filling out the form below or calling the office at: 623-878-7878