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Are You Pre-Approved?

Before you begin to shop for a new home, you should set up a time to meet with me so we can figure out how much you can afford. This will put you in a better position as a buyer. That’s when it is important to understand the distinction between being pre-qualified for a loan and getting 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, I 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 different loan programs that would work for you. This is only an intial step to help you understand the process, but it isn't a good place to stop.

It is important to understand that getting pre-qualified is just an estimate of what you are eligible to borrow, not a commitment to lend. Getting pre-approved for a loan gives you competitive advantage when the time comes to bid on a home because you have been approved for a loan for a specified amount.


To get pre-approved, you will complete a mortgage application and provide me with various information verifying your employment, assets and financial status such as W-2 forms, bank records and credit card statements. (Check out our Loan Application Checklist) We’ll review your mortgage options and submit your application through our Automated Underwriting system and if necessary, to our team of underwriters. Once the application process is complete you will receive a pre-approval letter indicating the amount we are willing to lend you for your home.


A pre-approval letter is not binding on the lender; it is subject to an appraisal of the home you wish to purchase and certain other conditions. If your financial situation changes (e.g. you lose your job), interest rates rise or a specified expiration date passes, we must review your situation and recalculate your mortgage amount accordingly. Getting pre-approved isn't the finish line, so be sure that you follow these 10 Commandments when buying a home!


Got other questions? Contact Us or leave a comment below.



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