The Difference Between Pre-Qualification and Pre-Approval, Part Two

Posted by wadmin on Tuesday, July 30, 2019

Stone Bridge Mortgage Group_The Difference Between Pre-Qualification and Pre-Approval

 

Portland first time home buyers may often feel in over their heads when starting the home buying process. Stonebridge Mortgage Group is here to help our Portland clients understand the ins and outs of preparing to buy a home.

You may have heard the terms “pre-qualification” and “pre-approval” in regard to mortgages. Although sometimes these terms are used interchangeably, there are differences between the two.

Pre-Qualified

Getting pre-qualified is a simpler, more informal process than getting pre-approved. This process involves supplying a bank or lender with your overall financial picture, including your debt, income, and assets. The lender reviews everything and gives you an estimate of how much you can expect to borrow. Portland home buyers can get pre-qualification over the phone or online, and there’s usually no cost involved. It usually only takes one to three days to get pre-qualified.

Portland home buyers should keep in mind that mortgage loan pre-qualification does not include an analysis of your credit report or an in-depth look at your ability to purchase a home. It’s based solely on the information you hand over to the lender, so it doesn’t mean much at all if you don’t provide accurate data.

A pre-qualified buyer doesn’t carry the same weight as a pre-approved buyer, who has been more thoroughly investigated. After all, the amount a Portland home buyer pre-qualifies for isn’t a sure thing. It is only the amount for which you might expect to be approved.

Nevertheless, pre-qualifying for a mortgage loan can be useful when it comes time to make an offer. Sellers don’t want to enter into a contract with a Portland buyer who isn’t committed. Sellers will often ask about pre-qualification status. In today’s competitive housing market, having a pre-qualification letter can make all the difference.

For more information on pre-qualifications and pre-approvals read, The Difference Between Pre-Qualification and Pre-Approval, Part One, where Stonebridge Mortgage Group walks Portland first time home buyers through the specifics of what it means to get pre-approved for a mortgage loan.

Stonebridge Mortgage Group Offers Guidance On All Mortgage Matters

Stonebridge Mortgage Group offers experienced loan officer and mortgage broker services in Gresham. You can rely on Stonebridge Mortgage Group to help guide you through the home buying process. We help get you pre-approved for a mortgage and help with your real estate loans and other mortgage solutions, both residential and commercial. Stonebridge Mortgage Group serves the greater Portland area and is located in Gresham, Oregon. Buying your first home? We can help!

Call us today at 503.661.5580

 

 

 

Categories: FIrst Time Home Buyer, General, home loans, Pre-Approval, Pre-Qualified

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