Are You Pre-approved, Pre-qualified Or Pre-ticked
- Date: 2008-10-09 - Word Count: 427
Share This!
You have gone to all the trouble of contacting a mortgage company, and have faithfully answered all their questions to get their letter saying you are pre-qualified, so why is it not enough for the real estate agent that you are working with?
If your real estate agent wants you to press on with your mortgage application until you can get pre-approved, do not be offended, he is simply working in your best interests. To make an offer for a home that you wish to buy, it is much more advantageous to be pre-approved than to be pre-qualified.
Why is that, you may wonder, and why did I bother to get pre-qualified? Well, in some ways, one is just a step on the way to the other. Generally speaking, a pre qualification is by word of mouth, (i.e. it is often over the phone) and back up paperwork is not requested.
There are some commonalities, i.e. both letters will give you the amount of the mortgage loan and the purchase price of the property on which it was based; this gives the seller, the buyer and the real estate agent some firm facts to go on.
Also, in order to get either a letter of pre-qualification or pre-approval, you must have given permission for a credit check to have been carried out - and presumably approved!
Several discoveries can be made after the pre-qualification has been granted which may actually 'unqualify' you. Most, if not all, of these hitches will be uncovered if you apply for pre-approval .
For instance, when your mortgage broker, who has already pre-qualified you, has to approach different mortgage institutions, they all have varying requirements.
Some may request the last two years worth of proof of income. Others may not like the look of your charge card statements and still others may balk if they realize that your down payment is a loan.
All these question and answer routines take time, and in the wait for your pre-qualification to become a pre-approval, you may lose the house that you have put an offer on - it depends on whether a counter offer has come in.
While neither is a cast-iron guarantee of a mortgage, a pre-approval brings you closer and cuts out the time required to be approved once you have selected the property that you want.
Also, the pre-approval will show you to be a serious buyer, and one who has done much of the paperwork, and can therefore bring the deal to a close quicker; all these points stand in your favor as a buyer.
If your real estate agent wants you to press on with your mortgage application until you can get pre-approved, do not be offended, he is simply working in your best interests. To make an offer for a home that you wish to buy, it is much more advantageous to be pre-approved than to be pre-qualified.
Why is that, you may wonder, and why did I bother to get pre-qualified? Well, in some ways, one is just a step on the way to the other. Generally speaking, a pre qualification is by word of mouth, (i.e. it is often over the phone) and back up paperwork is not requested.
There are some commonalities, i.e. both letters will give you the amount of the mortgage loan and the purchase price of the property on which it was based; this gives the seller, the buyer and the real estate agent some firm facts to go on.
Also, in order to get either a letter of pre-qualification or pre-approval, you must have given permission for a credit check to have been carried out - and presumably approved!
Several discoveries can be made after the pre-qualification has been granted which may actually 'unqualify' you. Most, if not all, of these hitches will be uncovered if you apply for pre-approval .
For instance, when your mortgage broker, who has already pre-qualified you, has to approach different mortgage institutions, they all have varying requirements.
Some may request the last two years worth of proof of income. Others may not like the look of your charge card statements and still others may balk if they realize that your down payment is a loan.
All these question and answer routines take time, and in the wait for your pre-qualification to become a pre-approval, you may lose the house that you have put an offer on - it depends on whether a counter offer has come in.
While neither is a cast-iron guarantee of a mortgage, a pre-approval brings you closer and cuts out the time required to be approved once you have selected the property that you want.
Also, the pre-approval will show you to be a serious buyer, and one who has done much of the paperwork, and can therefore bring the deal to a close quicker; all these points stand in your favor as a buyer.
Related Tags: loans, credit, mortgages, home loans, home buying, lending, mortgage pre-approval
Vox Real Estate is a popular source for information about Austin real estate. Visit VoxRealEstate.com to search East Austin real estate listings and find information about local schools and neighborhoods. Your Article Search Directory : Find in Articles
Recent articles in this category:
- Lenders Pull Self-certification Mortgages
One of the world's biggest finance companies has pulled its self certification mortgage range from - Should the Government Rescue Adverse Credit Mortgages?
The Federal Government's apparent willingness to support the market for adverse credit mortgages i - Pay Up Or Sell Up
Figures have been released stating that one in every five houses currently on the market are only th - Why Rent Property In Southsea?
Southsea is a charming area within the Waterfront City of Portsmouth. Its unique character and livel - Mortgage Regulation
The Financial Services Authority (FSA) is an independent regulator set up by the Government to - The UK Lending Outlook
This is very bad news for the UK home owner or first time buyer. The deals left are mainly very - Document Requirements and Checks for a Business Mortgage
Also required will be an asset and liabilities statement that shows the business debt but also th - Valuation Types
If the property was going to be let out to tenants there would still be a mortgage valuation howev - Energy Performance Certificates
The UK in 2008 will see new regulation being rolled out that will affect all commercial premise - Lower Interest Rates
The problem is banks are not charities and need to satisfy stock investor that they are profit
Most viewed articles in this category:
- Mortgage Refinancing - Rate Caps Protect You When Refinancing With an Adjustable Rate Mortgage
Adjustable Rate Mortgages can save you money when mortgage refinancing if you fully understand how t - 100% Mortgage Loans: What You Need to Know
Coming up with a 20% down payment can be a difficult task for many potential homebuyers. If you are - Home Equity Loan Pitfalls
The home equity loan came of age in 1996 when changes in the tax law eliminated deductions for the i - Mortgage Refinancing: How the Fannie Mae Weekly Yield can Help You Comparison Shop
Mortgage refinancing without knowing Fannie Mae's weekly yield is like buying a used car without kno - How to Pay Off Your Mortgage in 7 Years, Without Extra Payments
One of the most exciting new topics concerning wealth is “How to Pay Off Your Mortgage in - Mortgage Rate Comparison
Trying to get an "apples to apples" mortgage rate comparison can often be quite a hassle. Traditiona - Should I Pay Off My Mortgage Early?
Many people think that real estate debt is good debt. They think that their mortgage is their bigges - Mortgage Refinancing: Beware the Mortgage Vultures
If you are in the process of mortgage refinancing you need to be wary of overpaying for your loan. - Mortage Loans - How Much Does It Actually Cost In The End
Mortgage loans are the loans used to finance most people's first home. It is the big loan that ever - Where To Locate Home Improvement Loan Companies
Where to locate home improvement companies is a question that arises from many different people. Som
