First Time Home Buyers: Pre-Qualify vs Pre-Approval
Today's market can be challenging for a home buyer.
Being the first one to view the home and submit an offer may work in some instances, but not in every case. Pre-qualify to pre-approved. What is the difference?
Pre-qualify - The lender has received a mortgage loan application from the borrower. A review of credit scores has been completed by the loan officer.
Verbally, the borrower has provided the lender with their assets, debts, income and cash available to close. Sometimes in this fast paced market, the buyer is making every effort to submit an offer on a home and misses the most important step.
In order to move the buyer to the pre-approval stage, the lender should have a completed loan application, w-2s, tax returns, bank account statements and any other documentation for the underwriter to review for approval.
Pre-approval - means the required documentation has been provided to the loan officer and the lender's underwriter. They have reviewed the documentation and gives the buyer a conditional pre-approval letter.
This is still not an approval for a mortgage loan. But, it helps the buyer with the offer submitted to the seller. Income, assets, debts have been verified.
Conditional pre approval - The lender has received a copy of the purchase sales contract.
All of the necessary documentation including any repair amendments, survey, title commitment are received to ensure the lender requirements are satisfied.
The appraisal is ordered under this condition as well. Make sure to promptly submit any additional paperwork requested by the lender. This will assist with expediting the loan to clear to close.
Clear to close - Lender conditions has been satisfied.
Survey, title commitment, appraisal has been reviewed to ensure clear title and the home appraises for value. Homeowner's insurance has been submitted along with the real estate tax certificates.
Closing/Funding - The mortgage loan documents are prepared. Buyer and seller sign the required closing documents. The lender/title company work together to get the loan funded.
Funding means that all lender conditions have been met, the buyer and seller have signed and authorization is provided to release the keys.
After finding your dream home, don't let this happen to you: "Property is back on the market due to buyer financing."
Be a strong buyer, get approved by a lender/underwriter.
--
First Time Home Buyers: Pre-Qualify vs Pre-Approval Properties
$702,540
709
$227
0
Find a Home in First Time Home Buyers: Pre-Qualify vs Pre-Approval
More Neighborhoods
- 1200 Stacy Court, Denton, TX
- Clements Ranch, Forney TX
- Homes for sale - The Preserve, Rockwall, TX
- Camden Park, Farmersville, TX
- 5 FAQ's For Buyers in the Plano, TX Market
- Ford Middle School, Allen TX
- HomeKeepr
- Homes for sale Highland Meadows, Allen, TX
- Homes for Sale in Allen, TX
- Homes for sale in Chateaux of Allen, Allen, TX
- Homes for Sale in Cottonwood Crossing- Allen TX
- Homes for sale in Creek Trails
- Homes for sale in Cross Bend, Plano, TX
- Homes for sale in Cypress Meadows - Allen
- Homes for sale in Lakes of Prosper - Prosper, TX
- Homes for sale in Park Place, Allen, TX
- Homes for sale in Pasquinellis Glenridge Estates - Plano
- Homes for sale in Wylie Lakes - Wylie
- Homes for sale near The Harbor- Rockwall, TX
- Homes for sale near Watters Creek
- Homes for sale Phillips Creek Ranch - Frisco
- Homes for sale Villas at Twin Creeks, Allen, TX
- Homes for sale West Creek Estates - Plano
- Homes in Summit View, McKinney, TX
- Is it better to buy a new home or existing home
- New Homes for sale in Inspiration - St. Paul
- Bike Trails - Plano
- Filing your Homestead Exemption
- First Time Home Buyers: Pre-Qualify vs Pre-Approval
- Homes for sale in Austin Waters, Carrollton, TX
- Homes for sale in Hunters Glen Plano
- Homes for sale in Plano, TX
- Homes for Sale in Stinson Highlands
- Homes for sale in Timber Brook Estates Plano
- Homes for sale in Village at Twin Creeks
- Homes for Sale in Willow Wood
- Homes for Sale Merion at MIdtown Park, Dallas, TX
- Homes for sale Pasquinellis Parker Estates Plano
- Homes near Andrews Elementary School
- Homes near Barksdale Elementary, Plano, TX
- How much do you need for a down payment?
- McKinney
- McKinney Schools
- Murphy
- New homes - what is pre-pour foundation?
- Plano Homes for Sale - Inventory
- Plano Schools
- Relocating to DFW
- Search for All New homes in DFW, TX
- Search New Construction Home Listings
- Spring selling tips!
- Springtime in Downtown Plano
- Thank you!
- Trinity Falls, McKinney, TX
- What is the buying process like?
- Winsor Meadows at Westridge- McKinney
___________________________________________________________________________________________________________
Any home sales data appearing on this page is obtained from public record sources (or estimates, for non-disclosure states) as provided by OnBoard, LLC and does not comprise an appraisal or a Comparative Market Analysis (CMA). This information should not be used to replace a professional appraisal nor to determine the price of a particular property.