Mortgage Pre-Approval

If you are looking to and you are currently , 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. The Mortgage Specialists of Bank of Internet USA would be happy to answer any questions you have about mortgage pre-approval requirements and home loans in general.

Mortgage Pre-approval vs. Mortgage Prequalification

There are several steps involved in the mortgage application process. Right now, however, we're concerned with two basic steps:

Step 1: Apply for a Home Loan - Once you apply for a home loan, you will receive a mortgage prequalification letter.

Step 2: Provide documentation of the claims you made in your application to get a mortgage pre-approval.

Your initial mortgage prequalification letter from Bank of Internet USA will give you a basic idea of how much you can afford to spend on your home. However, it will not provide you with a specific loan amount for which you are likely to be approved. This is because you have not yet submitted the supporting documentation required for us to provide you with such a number.

Once you have completed your loan application by providing the necessary financial documents, Bank of Internet USA can check your credit, verify your documentation, and provide you with a pre-approval of your home loan. This pre-approval is well-respected by real estate agents and home-sellers alike. Now you can begin house-hunting with confidence, as the mortgage pre-approval process gives you a very strong idea of the actual loan amount for which you are likely to be approved.

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.

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Initial Mortgage Prequalification

Getting prequalified for a home loan is the first step in the mortgage process, and is generally pretty straightforward. First, we evaluate your overall financial picture including your debt-to-income ratio and assets. We then give you an idea of the mortgage amount for which you will likely qualify. 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

Once you have gotten your mortgage prequalification, you can request a full mortgage pre-approval, which is far more valuable than a prequalification because it means we are actually approving you for a specific loan amount (usually for a particular time period such as 90 days). Getting a mortgage pre-approval means that you can be you 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

There is a significant difference between mortgage prequalification and mortgage 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 amount we come up with for a prequalification 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 get going on house hunting, especially . Others just don’t like the idea of sharing financial information until they’ve found a home they’re sure they want to buy. But once that house is found, things tend to move fairly quickly. Waiting until that point to visit a lender can keep you from getting the house of your dreams, especially if there are other interested buyers.

Also, starting the process of applying for a mortgage early gives you ample 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 how much you can spend. In this case, just a little bit of effort up front can really prove the difference in making the rest of your home buying experience a successful one.

Request Your Mortgage Pre-approval Today

To get started with a mortgage prequalification or pre-approval, please complete the form on this page or contact a Mortgage Consultant at 1.888.546.2634