FHA Direct Loans

Would-be borrowers and home shoppers looking for the perfect dream home many times start the lending process without understanding the differance between pre-qualification vs. pre-approval and the expectations that they are one in the same.  THEY ARE NOT!  PRE-QUALIFIED AND PRE-APPROVAL HAVE TWO VERY DIFFERENT MEANINGS.

 

Loan Pre-Qualification
Being pre-qualified only provides you with an idea of your mortgage qualification limit and does not mean your pre-qualified loan amount and/our quoted rates and terms are set in stone nor can they be relied on.   

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More specifically, a pre-qualification is simply a snapshot of the borrowers lending amount and terms based soley on the borrwers input without verifcation and does not carry any influence with sellers and/or real estate agents!  

Loan Pre-Approval
Obtaining a loan pre-approval requires that you provide financial documentation based on the type of loan including a pre-curser review of your income, debts and credit check.  We do not pull credit without your permission first and we allow you to provide us your own report from companies like Credit Karma.   

 

Once a review is  completed (usually 24hrs).  We  will contact you regarding a qualifying amount, rate and terms that with hope meets with your expectations and budget.   If agreeable, we will immediately issue you a loan pre-approval letter an initiate the underwriting process when you are ready to move forward.  If you already have a contract, we will start the underwriting process the same day.

Think of a pre-approval like a pre-conditional loan commitment that highlights a loan amount.  You can then feel more comfortable with your house search, knowing exactly how much loan you can expect to borrow.

More importantly, having a pre-approved status will increase your bargaining power to make a deal on the home of your dreams.

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The Real Advantage of a Loan Pre-Approval vs. Pre-Qualification

The seller knows that a pre-approved buyer is one step closer to obtaining actual financing. Once you settle on a purchase price your pre-approval status will become part of a complete loan application package ready for underwriting review and, hopefully approval.

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