Once you begin to look for your new home, your Real estate agent will ask if you have been pre-qualified or pre-approved for a mortgage loan. Completing this process will put you in a better position as a home buyer, and home sellers will know that you are a serious and qualified buyer.
It is important to understand the difference between a pre-approval and pre-qualification when you are negotiating the purchase of a home.
As your mortgage consultant, Marimark Mortgage will issue you a pre-qualification letter. To determine how much of a loan you should qualify for, we will gather information about your current income, assets, and debt obligations. Then, with your permission, we will obtain your credit report and then look at the various programs available to meet your needs.
What is the Difference?
A mortgage pre-qualification helps buyers visualize how much they can afford to spend on a home. A pre-qualification letter, however, is not a commitment to lend you money. Instead, it estimates what a lender will most likely lend you based on the limited information provided.
For a mortgage pre-approval, additional information will be required. At this point, you will complete a mortgage application, which will provide information about your employment, assets, bank records, credit card debts, and other financial history. The lender completes this process, who assesses the information given, determining what loan options are best for you.
A pre-approval letter is not binding on the lender; it is subject to an appraisal of the home you wish to purchase and certain other conditions. For example, if your financial situation changes (e.g., you lose your job), interest rates rise, or a specified expiration date passes, your lender must review your situation and recalculate your mortgage amount accordingly.
Marimark Mortgage is based in Tampa, Florida, and serves the mortgage needs of homebuyers, homeowners, and investors in Florida, Virginia, and Pennsylvania.
We specialize in mortgages for first-time homebuyers, conventional home mortgages, refinance loans, reverse mortgages, and FHA, VA, and USDA mortgage options. We’ve worked extensively with cash-out refinancing and help clients to lower their monthly mortgage payments.
Updated on September 2, 2021