Before you begin to shop for a home, you should set up a time to meet with us so we can figure out how much you can afford. This will put you in a better position as a buyer. It is important to understand the distinction between being "prequalified" and "pre-approved" for a loan. The difference between the two terms will be crucial when you decide to make an offer on a house.
To get "pre-qualified" for a loan, we could gather information about your debt, income, and assets over the phone or by e-mail. We consider the information you provide and assess goals, as well as get an idea of different loan programs that would work for you. We would issue you a "pre-qualification" 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. Getting "pre-approved" for a loan gives you competitive advantage when the time comes to bid on a home, because you have been "pre-approved" for of a specified amount and loan program.
To get "pre-approved", you will need to provide us with various information regarding your employment and assets - such as pay stubs, W-2 forms, bank statements. We, at some point, would need to run your credit to have the complete credit profile. After review of the information and documentation you provide us, we will be able to discuss your mortgage options - allowing you to select the loan program that best meets your needs. Furthermore, we will be in a position to issue a "Pre-Approval" letter detailing your qualifications.
To take it one step further, we could submit your information to our underwriter, who would issue a "Conditional Approval/Commitment to Lend". This REALLY puts you in the driver's seat, because you would have something that seller" value - an ability to close quickly.
This "Conditional Approval/Commitment to Lend" would be subject only to an appraisal of the home you wish to purchase and title guarantee. In essence, you are approved until something significant happens and/or your financial situation changes (e.g. you lose your job), interest rates rise or a specified expiration date passes, the underwriter would review your situation and recalculate your approval accordingly.
If you would like more information, you can complete the information below or simply call us at (209) 470-7161.
