Mortgage Pre-Approval/Approval Whats Up with That?
October 18th, 2007 Categories: Real Estate News
Is pre-approval really an approval???
I get asked all the time about what different mortgage approvals mean. Loan officer throw terms like pre-qual, pre-approval and loan commitment around so much, that the average homeowner or even Realtor doesn’t know when the loan is actually approved. I hope this simple breakdown helps!
Pre-Qualification
Getting pre-qualified simply means you have spoken with a loan officer, and in his or her professional opinion you “should” be able to obtain a particular loan. It is the fastest and easiest way to find out what you could potentially qualify for, but you are not approved for the loan at all. If the loan officer miscalculated something or your information was not 100% correct then the actual approval amount could change.
Pre-Approval
Today getting a pre-approval can be almost as fast as getting pre-qualified. Most loans today can be underwritten by a computer system in mere minutes. The vast majority of pre-approvals today are done by loan officers that take your information, partially verify it and then run your complete loan application through a computer underwriting or decision making engine. The computer looks at the credit and the data you gave the loan officer and issues an “automated approval”. This approval is valid unless the information it is based on is wrong, so with solid documentation this type of approval is fast and dependable.
stay tuned for part 2
Olan Carder
Myers Park Mortgage
704-971-6193 / Office
Popularity: 1% [?]
[…] part 2 part 1 […]