Mortgage Preapproval
Are You Pre-Qualified or Pre-Approved for a Home Loan?
At Liberty Lending Consultants, we cannot stress the importance of meeting with one of our mortgage professionals before you begin to shop for a new home. Once you know how much you can afford to buy, you’ll be in a better position as a buyer.
Before you decide to make an offer on a dream home, it’s important to understand the difference between being pre-qualified and pre-approved for a home loan. The mortgage preapproval process can significantly impact your home buying journey.
Pre-Qualified
To get pre-qualified for a home loan, we will collect information about your debt, income, and assets. We’ll look at your credit profile and assess goals for a down payment and get an idea of which loan program works best for you. We can then issue you a mortgage prequalification letter indicating the amount you are pre-qualified to borrow.
It is important to understand that a pre-qualification letter is just an estimate of what you are eligible to borrow, not a commitment to lend. Getting mortgage pre approval gives you a much-needed competitive advantage when the time comes to bid on a home because you have been approved for a loan for a specified amount.
Pre-Approved
Now in order for you to get mortgage preapproval, you will need to complete a mortgage application and provide us with various information verifying your employment, assets, and financial status such as W-2 forms, bank statements, and credit card statements. We’ll review your mortgage options and submit your application to the lender that best meets your needs. Once the application process is complete, you will receive a mortgage preapproval letter indicating the amount your mortgage lender is willing to lend you for your home. It’s that simple.
Of course, the preapproval letter is subject to an appraisal of the home you wish to purchase and certain other conditions. And if your financial situation changes (e.g., you lose your job), interest rates rise, or a specified expiration date passes, your lender must review your situation and recalculate your mortgage amount accordingly – which, of course, we handle for you. We always keep you up-to-date from start to finish with your home loan!
Additional Resources
For further assistance, consider consulting with a financial advisor or using an online, such as our mortgage calculator to estimate your loan amount and mortgage rate. Whether you’re looking at a better mortgage deal, Remember, that working with an equal housing lender ensures that you get the best possible terms and conditions for your mortgage loan.
Whether you’re a first-time homebuyer or a seasoned real estate investor, understanding the nuances of the mortgage pre approval process can make a significant difference in securing the home of your dreams. At Liberty Lending Consultants, we’re here to support you every step of the way, from initial preapproval to final approval and beyond. Our loan officers are ready to guide you through the mortgage pre approval process and answer any questions you might have about real estate financing, whether you’re considering a mortgage refinance, a home equity loan, or exploring options with multiple lenders.