What's the Difference ?
Nick Bednarczyk
Leading Loan Advisor ?? Focusing on creative Jumbo and Non Qm Investor lending since 2004 NMLS 365574
Whats The Difference between a pre-approved and pre-qualified buyer letter?
When selecting a lender, your goal is to obtain a mortgage loan with terms that are most favorable to your situation and close within a timely manner.
Mortgage loans are available from many sources, including:
- Mortgage companies
- Savings and loan associations
- Banks
- Credit unions
- These organizations typically close their loans within 30 to 45 days of receiving the full loan package, on average. Not 30-45 days of offer acceptance.
What’s the difference between being pre-qualified and pre-approved for a mortgage?
Typically you will first pre-qualify for a mortgage, then get pre-approved before you have found the specific home you wish to purchase. What is the difference?
Pre-qualification: An informal determination by a lender or mortgage broker stating how much mortgage you can afford.
Pre-approval: A guarantee in writing by a lender to grant you a loan up to a specified amount.
What are the advantages of being pre-approved?
There are two advantages of being pre-approved for a loan as early as possible in your home-buying process:
- Sellers will find any offer you make more attractive if you are pre-approved for a mortgage.
- The length of time before closing can be shorter if you’ve completed the steps to securing mortgage approval prior to signing a contract on a property.
Want to save time and added stress when helping a buyer close a loan?
Make sure that the lender reviewed all the required loan documents prior to submitting an offer on a property.
All the Best!
Nick Bednarczyk
Senior Mortgage Consultant
NMLS # 365574
Fairway Funding Group Inc
Cell 941-266-7995