What is the difference between "prequalified" and "preapproved"?

A prequalification consists of a discussion between a home buyer and a loan officer. The loan officer collects basic information regarding the customer's income, monthly debts, credit history and assets, and then uses this information to calculate an estimated mortgage amount for the home buyer. The prequalification is not a full mortgage approval, but estimates what a home buyer can afford.

A preapproval, on the other hand, is a comprehensive approach using basic information as well as electronic credit reporting. Preapprovals, in most cases, are true mortgage commitments. The lender commits to financing your home and indicates the total mortgage amount available to you.

What types of mortgage programs are offered?

There are many mortgage products available, including: 15, 20 and 30-year fixed rate loans, variable rate loans, new construction financing and many more.

How long does it take to process a mortgage application?

Usually about 5-10 days, although it can take as few as 1 day and as long as 30 days for some transactions. The actual time depends on how quickly the lender can get an appraisal of the property, a credit report and verification of employment and bank accounts.

What documents will I have to provide?

Be prepared to provide verification of income (including a pay slip and recent tax returns), bank account numbers and details on your long-term debt (credit cards, car loans, child support, etc.). If you're self-employed you may also be required to provide financial statements for your business.

Could anything delay approval of my loan?

If you provide the lender with complete, accurate information, everything should go smoothly.

You should also be sure to notify your lender if your personal or financial status changes between the time you submit an application and the time it's funded. If you change jobs, get an increase (or decrease) in salary, incur additional debt or change your marital status, let the lender know promptly. You may also be delayed if the home you selected fails to appraise for the agreed purchase price.

What's included in my house mortgage payment?

Principal and interest on your loan. Depending on the terms of your loan.

When do my mortgage payments start?

Usually about 30 days after settlement. The actual date of your first payment will be included in your settlement documents.

More Questions?

If you require further information please feel free to Contact Us.

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