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Should i be preapproved (or prequalified - not sure what the diff is) before visiting open houses

We are seriously looking to buy, not just looking around
By 77nicole.marchand6001775 from CT Apr 22nd 2014
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Yes you should be this way you know what price homes you should be looking at.Give me a call 860-836-6952, I am right in CT I would be glad to help you outJeff Heidtmann

Apr 22nd 2014

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They are virtually the same thing. Only difference is actual lenders issue pre-approvals, whereas mortgage brokers issue a pre-qual (because they are not a lender). The document is the same, especially if you are working with a broker who takes the time to do all the due diligence involved...Not everyone does.If you are interested, please contact my firm, GC Financial Services @ 203-221-2661 & ask for Brad.

Apr 22nd 2014

There are no set definitions, however, to most mortgage consultants a pre-qualification is something that is some how lacking the authority of a "pre-approval."Pre-qualification can mean determining a borrower's qualification for a loan along with the amount they qualify for based on credit and the incomeand reserves provided orally by the borrower. Pre-qualification can also meana loan approval by a broker or a bank loan consultant that is based on providingnecessary paperwork, but lacks the authenticity of at least an automated underwrite. Generally, if all the necessary paperwork has been received and evaluated, and the detailed application has been run through an automated underwrting system granting approval...that constitutes a pre-approval by mostdefinitions of what a pre-approval is. Sometimes, a pre-approval requires a fullreview by the Underwriter. When there are any questions about the loan in the consultant's mind it should be submitted to an Underwriter for the pre-approvalbecause potential issues could cause problems later on. You should be finewith a regular pre-approval based on providing the necessary paperwork and completed application!

Apr 22nd 2014

Great question. You should be pre-approved for a mortgage and not pre-qualified. A Pre-Qualification typically means a buyer has spoken with a lender (who may or may not have pulled a credit report) and verbally discussed employment, liabilities, payment histories, and assets. Actual verification of assets, income, and credit may not occur with a pre-qualification. Getting pre-approved entails a strict review of the client's credit, down payment capacity, income, asset documentation, and review of tax returns. Credit reports are thoroughly dissected, rather than just credit scores verified. You wouldn't want to be half way through your loan process after spending money on a home inspection and appraisal to find out that you are no longer approved. This can happen quite often with a pre-qualification. Much better to be safe and provide enough documentation upfront by getting a pre-approval. Hope this helps! Robert @ 203-713-8200 ext 104

Apr 22nd 2014

Hi Nicole! Yes, if you are serious about looking to purchase a home you need to be pre qualified- I can help you. As a Community Banker we have 1st time homebuyer programs that offer down payment and closing cost assistance, reduced closing fees, call me at 203-788-2619 or e-mail me pbass@nvsl.com. Look forward to hearing from you!

Apr 22nd 2014

It is always better to have the approval based on an underwriter rather than a automated system. It will be worth its weight in gold when putting offers in and negotiating and it will remove as much concern as possible as far as your ability to obtain financing.This is known as a TBD approval (TO BE DETERMINED). CBC would be able to do a full credit/income/ asset underwrite prior to you finding a property.Lending Nationwide. VA, FHA, USDA, FNMA, FMAC, Reverse, Commercial, SBA, Jumbo. 877 890 3892 / john.bates@cbcnationalbank.com

Apr 22nd 2014

Yes, and your local mortgage broker is your best source for mortgage finance.. they deal with numerous lenders with varying lending programs, which is different from your community bank or credit union.. these types of lenders only have one lending source with a standard set of guidelines.. if you don't meet the guidelines, your denied.. so the Broker give you the best options and would preferred.. a pre qualification is when you sit with a loan officer and they run your credit and get copies of your supporting documentation necessary to verify income and assets.. (pay stubs, bank statements, tax returns, w2's).. A Pre approval is when all that documentation along with your application and disclosures are sent to an underwriter and gets signed off.. In times past, there were a lot of companies that offered pre approvals, however because of the stringent underwriting criteria of todays lending environment, most lenders do not have the resources to spend underwriting a file for pre approvals.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

Apr 22nd 2014

It is definitely a good idea to know what you are approved for before beginning to look at homes. Make sure to work with a lender that does a full preapproval. This means that they have collected all of your supporting documentation (paystubs, bank statements, taxes, etc) and pull your credit, as well as run your loan through automated underwriting which will determine what you will actually qualify for. Far to often, lender simply scan the file and issue a "prequalification or preapproval" without fully scrutinizing the file (which the Underwriter will of course do when your actual loan is submitted). It is more work for the Loan Originator, however more than worth it for you in the long run. Best of luck!

Apr 22nd 2014


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