Mortgage Pre-Approval vs. Pre-Qualification

Mortgage Pre-Approval vs. Pre-Qualification

Are You Looking to Buy Your First Home?

Are You Thinking About Making a Move?

No matter your goals, there are several steps you can take in advance to streamline the mortgage process and make it more manageable!

Getting Pre-Qualified

The purpose of mortgage pre-qualification is to help you understand what you can afford when shopping for a new home. Pre-qualification involves assessing your financial status, which allows you to establish a budget and determine your potential monthly payments.

By downloading my app, you can get pre-qualified in under 60 seconds! This tool will also provide you with an estimate of your monthly mortgage payments and help you compare various payment schedules.

Getting Pre-Approved

While pre-qualification gives you a general idea of your affordability, pre-approval is a step further. Pre-approval means that a lender has officially stated (in writing) that you qualify for a mortgage and specified the amount based on your submitted income and credit history documentation.

A pre-approval typically includes details such as term, interest rate, and mortgage amount, and is valid for a brief period, assuming all conditions are met.

Benefits of Pre-Approval

  • Confirms Your Budget: It confirms the maximum amount you can afford.

  • Locks in Interest Rates: It can secure an interest rate for 90-120 days while you shop for your new home.

  • Strengthens Your Offer: It assures sellers that securing financing won't be an issue, which is crucial in competitive markets with multiple offers.

Important Considerations Post-Pre-Approval

Once you obtain pre-approval, it's crucial to maintain your financial and employment status until the mortgage application and sale are complete. Avoid making changes such as quitting or changing jobs, buying a new car, transferring large sums of money between bank accounts, leaving bills unpaid, or opening new credit cards. Any changes could jeopardize your pre-approval status.

By taking these steps, you'll be better prepared and positioned for a smooth and successful home-buying experience.

Let us help you find your dream home or guide you through a successful real estate transaction. Your satisfaction is our priority!

Contact us today for more details or to explore your options, discuss your needs, and benefit from our expertise.

Phone: 604-530-0231

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