loan pre qualification letter

As one mortgage banker told Realtor.com, “I tell most people they can take that pre-qualification letter and throw it in the trash.” That’s not to say pre-qualification doesn’t serve a purpose.

Types of Mortgage Letters. There has been some confusion among those looking to buy a home and qualify for a mortgage loan regarding the difference between a mortgage pre-approval vs. a pre-qualification letter.Indeed, they sound pretty similar, so hearing these terms before or during the hectic time while considering buying a can only add to add to the confusion for novice buyers.

Contact one of our experienced mortgage loan officers to get pre-qualified today !. You may request a Pre-Qualification letter from your Mortgage Loan Officer,

Getting preapproved for a mortgage before you go home shopping isn’t required, but it is a good idea, especially in a seller’s market, where competition among buyers is intense. Unlike a.

Learn what it means to get pre-approved vs. getting pre-qualified for a mortgage so you can determine the option that works best for you.. mortgage prequalification and preapproval. Share.. Pre-qualification is neither pre-approval nor a commitment to lend;.

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Mortgage pre-approval, on the other hand, involves the same steps as a mortgage application – you’ll provide detailed information about your income and assets that will be reviewed by the lender’s underwriters. If pre-approved, you’ll get a conditional commitment by the lender for a specific loan amount.

A pre-qualification, on the other hand, is simply a verbal conversation with your loan professional about your financials, that’s it. It holds no water in a real estate purchase contract offer.

After you find the right home, getting the right mortgage is the next important decision you’ll make in the homebuying process. Being prequalified by a mortgage lender lets you know how much you can borrow. To be sure you’re getting the best deal, talk with multiple lenders and compare their mortgage interest rates and loan options.

This pre-qualification letter does not constitute loan approval or commitment to rate, fees, or term. Any misrepresentation in the loan application or adverse change in the applicant’s finan-cial position may void this pre-qualification letter, as would a poor credit history by accepted standards.