Have Your Credit Pre-Approved
Getting a credit pre-approval
means you receive a loan commitment from your mortgage company before
you have found a home, based on a review of your credit and
finances. A credit pre-approval shows sellers that you're a
qualified buyer and helps you establish a clear price range.
The credit pre-approval process
The process of applying
for a credit pre-approval is the same as a typical mortgage
application, except that it doesn't include information on the property
you will purchase. Your loan officer collects information on your
credit, income, assets, and debts, and sends this information through
an underwriting system. If the underwriting process determines
that you qualify for a loan, you receive a loan commitment for up to a
certain amount, which is contingent on the property meeting certain
criteria.
Benefits of having your credit pre-approved
There are many good reasons for getting a credit pre-approval before you buy a home:
- It makes your home search more efficient by allowing you to focus only on homes you know you can afford.
- It lets sellers know that you can back up your offer, so they don't have to worry about whether you can get a loan.
- It lets you know early in the process if you will have
difficulty getting pre-approved, so you have a chance to address
problems before finding a home.
- It gets most of the mortgage process out of the way up
front, so you can complete your transaction quickly after you find a
home.
Pre-qualification
Like having your credit pre-approved,
getting pre-qualified can help you determine your price range.
The difference is that pre-qualification does not involve a credit
check and is based only on your stated income, assets, and debts.
Because of that, a pre-qualification can't give you as precise an
estimate of your buying power as having your credit pre-approved.
It also doesn't carry the same weight with sellers because your credit
is still a question mark.
If you'd like to have your credit pre-approved, Apply Now.
