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Get

PRE-APPROVED

Pre-Qualified vs. Pre-approved

Some lenders will simply ask you to fill out an application, requiring little to no documentation, and say you’re “preapproved” and can get out home shopping. Although this requires less work initially, it can easily cause chaos, headaches, and potentially lost money in the long run.

 

Pre-qualified requires little to no documentation for credit, income, and assets - three most important factors. For example, they may simply ask you what you make to see if your debt to income ratios (DTI) are in line with requirements for some loan programs. Now, no one would think you’re lying about what you make; however, in many circumstances what you actually make or “think you make” may not be in line with what's used for qualifying purposes.

 

It’s for this reason that’s it’s extremely important to get fully PRE-APPROVED up front. This will help prevent issues from arising down the road. The last thing you want is to go under contract on a home, schedule and pay for inspections, begin preparing to move, and then find out that your loan was denied in underwriting.

Get

PRE-UNDERWRITTEN

OR BETTER

Pre-Approved vs. Pre-Underwritten

Most lenders take an initial application and pre-qualify or pre-approve you from that; however, your file never makes its way to an underwriter until AFTER you’ve gone under contract on a property.

 

Fortunately, some lenders (like ours) have the ability to actually send your file to underwriting PRIOR to having a contract! Why is this such a big deal? Having an underwriter review and sign off on initial loan approval provides confidence to not only you but also to potential sellers! It relieves fear that your loan may be denied later in the process for income, DTI, program guidelines, or other related issues.

 

WHEN IN DOUBT... GET PRE-UNDERWRITTEN!

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