Are You Pre-Qualified or Pre-Approved for a Mortgage Loan?

Before you begin to shop for a new home, you will want to set time to meet and talk with Korene so you can be determined how much you can afford and what loan program best suits your qualifications, your needs, your wants, and your financial goals. This will put you in the best position as a buyer.

Now is when it is important to understand the distinction between being pre-qualified for a loan and pre-approved for a loan. The difference between the two terms will be crucial when you decide to make an offer on a house.

To get pre-qualified for a loan, we will collect information about your debt, income, and assets. We’ll look at your credit profile and assess goals for a down payment and get an idea of different loan programs that would work for you. Korene will then prepare you a pre-qualification letter (LSR or Loan Status Report) indicating the amount you are pre-qualified to borrow to be given to your realtor.

It is important to understand that a pre-qualification letter is just an estimate of what you are eligible to borrow, not a commitment to lend. Getting pre-approved for a loan gives you competitive advantage when the time comes to bid on a home because you have been approved for a loan for a specified amount.

To get pre-approved, you will complete a mortgage application and provide Korene with various information verifying your employment, assets and financial status such as W-2 forms, bank records and credit card statements. We’ll review your mortgage options and submit your application to the funding source that best meets your needs. Once the application process is complete you will receive a pre-approval letter indicating the amount your lender is willing to lend you for your home.

A pre-approval letter is not binding on the lender as it is subject to an appraisal of the home you wish to purchase and certain other conditions. If your financial situation changes (e.g. you lose your job), interest rates rise or a specified expiration date passes, your funding source must review your situation and recalculate your mortgage amount accordingly.

You can start the process today by filling out the   Loan Application form that is linked to the tab at the top of this page or you can fill out a basic format and Korene or one of the team will be intouch with you in just a bit.

Why Should You Talk to a Mortgage Professional Before House Hunting?

Even if you have not so much as picked out houses to visit yet, it is important to see your mortgage professional first. Why? What can we do for you if you have not negotiated a price, and do not know how much you want to borrow?  You can always use the calculators available on our site to get an idea of how much mortgage you can afford -- but it is important to meet with us. For one thing, you will need a a Loan Status Report (LSR) or Pre-Qualification Letter.

When we pre-qualify you:

    1. We will talk to with you and find out what your goals, financial plans, and financial capabilities are.
    2. We will ask you questions and fill out a complete loan application.
    3. We will pull your credit reports and go over it with you to determine if there is any incorrect information on it.
    4. We will help you determine how much of a monthly mortgage payment you can afford, and how much we can loan you. We do this by considering your income and debts, your employment and residence situations, your available funds for down payment and required reserves, and some other things. It is short and to the point, and we keep the paperwork to a minimum!
    5. We go over various loan programs with you.

Once you have been qualified, we give you and your realtor what is called a Loan Status Report (LSR), (your real estate agent might call it a Pre-Qualification Letter), which says that we are working with you to find the best loan to meet your needs and that were confident you will qualify for a loan for a certain amount.

When you find a house that catches your eye, and you decide to make an offer, being pre-qualified for a mortgage will do a couple of things. First, it lets you know how much you can offer. Your real estate agent will help you decide on an appropriate offer, but being pre-qualified gives you the confidence to know you can follow through.


More importantly, to a home seller, your being pre-qualified is like you walked into their house with a suitcase full of cash to make the deal! They will not have to wonder if theyre wasting their time because youll never qualify for a mortgage to finance the amount youre offering for the home. You have the clout of a buyer ready to make the deal right now!


Basic Pre-Approval

Get the Best Mortgage Rate! Tell us a little about your current needs and we can use that information to match you with just the right loan.

Tell us about your loan needs.
How can we get in touch with you?
Tell us about your credit history.
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