Get Pre-QualifiedStart the Home Purchase Process the Right Way
- Pre-qualification is usually free.
- There is no loan commitment from the lender until the buyer is pre-approved.
Getting pre-approved is the next step in the process, and it tends to be much more involved. To be pre-approved you will complete an official mortgage application (and usually pay an application fee), and then supply the lender with the necessary documentation to perform an extensive check on your financial background and current credit score.
- With a Pre-approval, you receive a conditional approval from a lender for a certain loan amount.
- This puts you in better negotiation position as the seller know you are serious about purchasing and closer to being approved for a loan.
Remember if any of your financial circumstances change before closing on the sale of the home, you must contact the lender. The loan prequalification or pre-approval may no longer be valid.