The Loan Process...

Step 1 | Step 2 | • Step 3 | Step 4 | Step 5 | Step 6

Step Three:

Get pre-qualified or pre-approved

When you start shopping for a home, it's nice to know just how much home you can afford. Even better, wouldn't you like an edge over other buyers interested in the same home you are?

Here's the difference between these two buyer tools.

Pre-qualification

  • Provides a "ballpark" estimate of you borrowing power
  • Is based on summary information you provide on your income and assets
  • Requires satisfactory review of property, financial documents and program requirements to issue final approval
  • Is offered by most lenders

Pre-approval

  • Provides proof to real estate agents and sellers that you're pre-approved for a specific loan amount
  • Is based on a verification of your income, credit and assets (in some cases, documentation of income and assets may not even be necessary)
  • Requires a satisfactory property review and no change in financial condition for final approval
  • Is offered as a service to you before you find a home at no cost
  • Can be quick and easy