"Mortgages can be fun!"
(said no one ever)
A pre-approval letter is a document provided by a licensed loan officer stating that a buyer can afford a property purchase up to a specific amount. Essentially, it answers the question that many sellers have when talking to potential buyers: Are You Good For It?
Unfortunately, these terms get used interchangeably often. They both relate to the assessment of a homebuyer’s finances by a mortgage professional to see how much a buyer can afford. The main difference is that a pre-approval requires that the mortgage pro actually sees documentation verifying the buyers finances. Some pre-qualifications may only be based on the buyer’s self-reported finances. If you are serious about buying a home, these docs will be needed at some point in the process, so we prefer to get them sooner. That way we can provide a reliable pre-approval letter that will reduce problems further into the homebuying process (when issues and delays are typically MUCH more costly).
“Once we submitted the online application and sent her the necessary docs she got back to us with a pre-approval letter the very next day. We were so stoked we were able to start looking for homes that weekend. Julie even made calls to the seller to assure them of our qualifications and champion our offer.
Who does that?!?!?”
…and if you’re keeping score at home, the answer to Dave’s question is: We do that.
So, when you’re ready, check out our easy loan application so we can get you pre-approved.
PS Also, check out our simple eval process where you can choose whether you want to: get real rates specific for your scenario (beware of teaser rates!), see how much home you can afford, or quickly submit your contact info so we can get back in touch.