Would you like to know about how the pre-qualification process works for a home loan? We will get you prepared with 4 steps to educate you about the process. We will learn about the pre-qualification vs pre-approval, mortgage pre-approval process, and what it means to be pre-qualified.
You need to have a pre-qualification letter and this pre-qualification letter will basically mean that you have a strong financial backing and because you have a strong financial backing you’re able to prove that you have the funds to buy that home. Presenting a strong offer works in your favor and you want to get that house don’t you?
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A pre-qualification is when a lender takes your basic financial information and runs your credit score. That’s it.
So there’s actually two different types of pre-approvals that you can obtain. The first pre-approval is a loan officer for approval. And that’s where they take your application and they ask for additional documents such as w-2s, tax returns and anything else they need to back up that information in your initial application.
Remember there are two different types of pre-approvals. Therefore, this one is a fully underwritten pre-approval. Underwriting means an additional step is done to verify the information. With the underwriter they actually do back reports. No one else can do these reports besides them. They do these reports so that they can see any additional information that needs to be brought up before closing because these issues can eventually prevent us from closing.
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