Pre-approval is an important step in the home-buying process. Understand how it differs from pre-qualification and why you need one.

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For these reasons, most real estate agents will demand that you get pre-approved before they even begin showing you prospective properties. Most agents have a mortgage contact they’ll likely refer to.

Mortgage pre-approval: Making it official. pre-approval shows you have the resources to make the purchase and it helps you act quickly when you find the perfect home. From the sellers’ point of view, a pre-approved buyer is more attractive than someone who says they can buy a house but have nothing but their word to back up their offer.

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A mortgage pre-approval is when a lender gives their written commitment to a potential borrower. The mortgage pre-approval process is one in which a lender will obtain from the potential borrower their bank statements, tax returns for the past several years, verify their employment, and pull a tri-merge credit report.

Difference Between Pre-approved and Approved for a Mortgage. By: Beth Winston . Find out how much you can borrow by getting a pre-approval letter. mortgage image by hans slegers from Fotolia.com.

Pre-qualification and pre-approval definitions. For mortgage pre-qualification, you provide your income, asset and credit rating information, and lenders estimate the loan amount you can afford

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Getting pre-qualified and getting pre-approved both give buyers a price range. To get pre-qualified, a buyer provides a lender with a basic overview. a lender will approve a mortgage in the amount of the pre-qualification.

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a sailor-turned-Realtor who specializes in first-time home-buyers and military families in the Seattle area. “Make sure that’s done.. Any pre-approval works, we just need to make sure you’re.

Use NerdWallet’s free mortgage prequalification calculator to see whether you qualify for a home loan, and if so, what amount you can get prequalified for.

The difference between a mortgage pre-approval vs. pre-qualification is enormous! mortgage pre-approval defined. According to the Federal Reserve’s definition, a mortgage pre-approval is a written commitment that’s issued by a lender following a comprehensive analysis of their overall creditworthiness.