Mortgage Pre-Approval

If you are looking to and are , then it is important that you understand what mortgage pre-approval is, how it differs from mortgage prequalification, and why it is so important to the home buying process. Getting a mortgage pre-approval allows you to begin house-hunting with a good idea of how much you can afford to spend on your new home.

Mortgage Pre-approval vs. Mortgage Prequalification

There are several steps involved in the mortgage application process. The initial steps include:

  • Applying for a Home Loan: Once you apply for a home loan, you will receive a mortgage prequalification letter. This letter will give you a general idea of how much you can spend on your home, but will not provide you with a specific loan amount.
  • Supplying Documentation: Once you have submitted the required financial documents to Bank of Internet USA, we can check your credit and verify other details necessary to providing you with a specific loan amount for which you are likely to be approved. This is called a mortgage pre-approval and is well-respected by real estate agents and home-sellers alike. This will allow you to begin house-hunting with confidence.

Call 1.888.546.2634 to speak to a knowledgeable Mortgage Consultant who will customize a home loan package that is just right for you.

Bank of Internet Home Loans - Get an Instant Rate Quote

Loading...
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...

Initial Mortgage Prequalification

Getting prequalified for a home loan is the first step in the mortgage process, and is generally pretty straightforward.

  1. First, we will evaluate your overall financial picture, including your debt-to-income ratio and assets, based on the information you provide.
  2. We will then give you an approximate idea of the loan amount for which you would qualify if all of the information you provided could be verified.

Mortgage prequalification can be done over the phone or online, and there is no cost involved. Mortgage prequalification does not include an analysis of your credit report or an in-depth look at your ability to purchase a home.

Mortgage Pre-approval: The Important Next Step

At this point, you can request a full mortgage pre-approval. A mortgage pre-approval is far more valuable than a prequalification because it means we are actually approving you for a specific loan amount, usually valid for a particular time period such as 90 days.

Getting a mortgage pre-approval means that you can be confident in your ability to obtain financing, although it is still subject to final loan approval and the appraised value of the property. Thus, securing a mortgage pre-approval before shopping for a home speeds up the underwriting and loan approval process, and allows you to go house-hunting with a good deal of certainty about what you can afford.

The Difference between Prequalification and Pre-approval

When you get a mortgage prequalification, it is based solely on information you provide,without a detailed review of your income, assets, and credit history. Therefore, the prequalification amount is more of an estimate. It has not been underwritten against our credit guidelines for the mortgage program that will be used for financing.

When you obtain a mortgage pre-approval from Bank of Internet USA, it means that we have underwritten your income, assets, and credit history to confirm you meet the credit requirements necessary for the terms of the mortgage you intend to use for financing.

Examine Your Loan Reality Early

Postponing mortgage preapproval may be tempting to those excited to start house hunting, especially . Others may not want to share their financial information until they’ve found a home they want to buy. But once they find that house, things tend to move quickly. Waiting until that point to visit a lender can keep them from getting the house of their dreams, especially if there are other interested buyers.

Starting loan application process as early as possible gives you time to make sure all of your documentation is correct and in order and to deal with any possible credit report issues so you have the best credit rating possible--often a key factor in the loan amount for which you are approved.

Request Your Mortgage Pre-approval Today

To get started with the mortgage prequalification and pre-approval process, please complete the form on this page or contact a at 1.888.546.2634 today.