WHAT'S
WHAT?
P R E - Q U A L I F I C A T I O N V S . P R E - A P P R O V A L
Beore beginning your house hunt, it's a good idea
to get pre-qualiied or pre-approved or a mortgage.
Doing so will give you an idea how much you can
a-ord to spend so you won't waste your time
looking at houses that are out o your price range.
Keep in mind, though, that pre-qualiications and
pre-approvals are two very di-erent things:
• Getting PRE-QUALIFIED simply means that
a lender has provided you with an estimate o the
mortgage amount you will likely qualiy or. I you
choose to purchase a home, you will still have
to go through the actual mortgage application
process at that time.
• Getting PRE-APPROVED requires you to provide
a lender with paperwork so they can veriy your
income, credit, etc. I that lender does decide to
pre-approve you or a mortgage, it essentially
means you are guaranteed to get a loan up to a
speciied amount (assuming no major inancial
changes occur) or a limited period o time.
Realtors require that you have a pre-approval
letter beore showing you a home. They want to be
sure you have been approved to purchase a home
and want to show you houses in your price range.
You will need a pre-approval letter to get an o-er
accepted, so it is best to visit with your lender prior
to working with a realtor.
HOME
FINANCING
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