Prequalify vs. Preapproved - What is the difference?
Prequalify vs. Preapproved is one frequent question from first time home buyers (and others). What is about the difference between being prequalified and being preapproved for a mortgage? Think in terms of the sequence of events. First, a loan officer prequalifies you, next, complete the full loan application to be preapproved, and then when you find the property, your preapproval becomes a complete application. Email Prequalify vs. Preapproved questions. Some specific of the difference between prequalify vs. preapproved-
Being prequalified indicates that a loan officer has collected some information about your debt, income, and assets. The loan officer then will look at your credit profile and your goals for down payment etc. to get an idea of several different loan programs which will work for you as an individual. Some calculations are performed to determine which program gives the highest loan amount/lowest payment/most closely matches your needs based on the underwriting guidelines and gives you an opinion as to your ability to prequalify for a specific program. This is where the loan officer's skill and experience are invaluable to the consumer.
To go to the next step, preapproved, will require you to complete the full loan application and submit all of the appropriate documentation for review by the loan officer. You have not usually found a property at this time and any reference to property on the application is left blank. In a lender who has embraced technology, the application is submitted to electronic underwriting and the "black box" gives the loan officer immediate loan approval. Generally, the process should take no more than 24 hours from receipt to having the loan approved. You are now approved and you just need to find a home at or below the approval amount. If there are additional documentation requirements, your loan officer should let you know at this time.
Full Loan Approval
Once your contract is ratified, send the contract to your loan
officer and the appraisal will be ordered. It may take 2 weeks for the appraiser
to complete his work and get the appraisal back to your lender. When it is
received, the underwriter will review everything for completeness and issue a
final approval or "clear to close" Get ready to move! You are now a
homeowner! As a Certified Mortgage
Planning Specialist, I offer an analysis of
your situation today can make suggestions on how small changes in how
your consumer and mortgage debt is structured today can have a life changing effect in the years
to come. Read more
about this free, no obligation service.
As a Certified Mortgage Planning Specialist, I offer an analysis of your situation today can make suggestions on how small changes in how your consumer and mortgage debt is structured today can have a life changing effect in the years to come. Read more about this free, no obligation service.