410-991-2191
info@atlanticprimemtg.com
Apply Now
Secure Doc Upload
Atlantic Prime Mortgage Logo

Annapolis Best of 2018    Annapolis Best of 2019   Best of Annapolis 2020    2020 Five Star Mortgage Professional

Questions? Call Us at
800-204-1283

Apply Now

David Jones

NMLS ID 213543

410-991-2191 info@atlanticprimemtg.com

Blog

What Is The Difference Between A Pre-Qualification & A Pre-Approval?

What Is The Difference Between A Pre-Qualification & A Pre-Approval?

March 14th, 2017 | annapolis, brokers, buy new, credit, lenders, loans, mortgage, new home, real estate, refinance, pre approval, pre qualification

One mistake that home buyers commonly make is not getting a pre-approval.  Many home buyers believe that a pre-qualification is the same as a pre-approval, which is not true.

A mortgage pre-qualification can easily be defined as an estimation of how much a buyer can borrow.  In many cases a pre-qualification is only as good as the piece of paper that it’s written on.  It’s fairly common practice that a mortgage lender who pre-qualifies a buyer asks them for information such as income, debts, and other assets without verifying the information.  If a buyer is not truthful or makes a mistake when giving the information this can lead to problems in the future when the mortgage is verified by an underwriter.

A mortgage pre-approval is what every home buyer should obtain prior to looking at homes.  This can be easily defined as a written commitment for a buyer from a mortgage lender.  To obtain a mortgage pre-approval a buyer will be required to provide the same documents that are required when formally applying for a mortgage, such as w-2’s, pay stubs, and bank statements.

There are many reasons why a mortgage pre-approval is better than a mortgage pre-qualification. 

Two of the most important reasons why a pre-approval is better than a pre-qualification:

  • Helps buyers beat out competition in multiple offer scenario or strong seller’s market
  • Gives peace of mind to a seller when submitting offer that the mortgage will be approved

Click here to learn more!

Comments



Leave a Comment

Contact Us


Not readable? Change text.