3 Types of Approvals!

1. "Pre-Quals" and Pre-Approvals act as a dry run of the loan application process. The mortgage lender will use details you provide about your credit, income, assets and debts to arrive at an estimate of how much mortgage you can afford. The whole process may take only minutes or a few hours at most.

2. While a pre-qual is non-binding to the lender, it does serve as a good indication to potential sellers of your general creditworthiness. However, in today's competitive marketplace, you will at least want a pre-approval where the lender pulls your credit, reviews your W2/pay stubs, assets and submits your loan into the automated underwriting system via Fannie Mae or Freddie Mac. The system also works for VA and FHA as well.

3. These days most sellers will NOT accept an offer without at least a pre-approval letter, so if you are serious about buying this is the first step towards getting you in your new home.

4. If you wish to make strong purchase offers - as if you were a CASH BUYER - then what you want is a FULL APPROVAL from your lender! That's when your income documentation has been submitted to an underwriter and completely vetted. Once you have a full approval, it's like cash in hand. You and your Realtor can be fully confident in making more aggressive purchase offers (lower price) because your purchase is not contingent on obtaining a loan!

Click this LINK to start the pre-approval process!

Are you 60 or Older? Learn how to buy a home with a Reverse Mortgage HERE!