Prequalification and Preapproval

Preapproval or Prequalification what’s right for you?

Prequalification

A prequalification is the first step in your journey to buying a home. When you are prequalified you will receive a letter from the bank stating how much you may be able to borrow based on the information you provide to the bank. It is not a mortgage application and it is not a commitment to lend. A prequalification is a great way to show a real estate agent that you are ready to start the search for a new home. It is also a great way for you to find out what steps you may be able to take to increase your borrowing power. Keep in mind that your credit history is not analyzed. If you have concerns about your credit, talk to your mortgage originator about what is the best option for you.

Preapproval

A preapproval is the same process as a mortgage application. You will be required to provide detailed financial information about your income and assets. All information is verified by the lender and credit decision is made. A preapproval is generally good for 90 days so you should be actively looking to purchase a property. A preapproval will help you act quickly when you find a home that you wish to make an offer on and assures the seller that you quailed buyer. Many sellers require a preapproval when placing an offer. A preapproval will show an inquiry on your credit report. To apply for a preapproval contact us or click below to apply for a preapproval.

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