Why Get Pre Approved for A New Home Mortgage?

If you are going to be making an offer on a new home, nothing is as important as getting Pre Approved from your Lender. Not Pre-Qualified for a Home Mortgage but full Approval. Many home buyers do not know the difference and feel secure in receiving a pre-qualified letter from a Lender. Many times the result is you cannot buy the home of your dreams.

Pre-Qualified for a Mortgage

Getting pre-qualified is the process of using the information you filled out on an application and determining if you are qualified for a new Home Mortgage. The problem, lots of things can arise that are not looked into nor cleaned up and you make an offer but cannot get a loan. An example is your credit report. In a pre-qualified situation the report is not run or if run not really looked at. Maybe you have a mortgage late, or a judgment or a item you have disputed. All need cleared up to get an Approval. That could take months.

Pre-Approved for a Mortgage

Most loans are sold to Fannie Mae. Thus, you have to meet their Desk Top Underwriting guidelines up front. When you submit an application for a new loan it is usually ran thru Fannie’s DU program and an Approval is issued. In this approval, it will list multiple conditions you must meet. Something simple like you must have 6 months of payments in a savings account as reserves could come up as a condition. There will be different ones based on you and the loan required.

It will look at the credit report that was ran and everything on it. It will look at the Income you stated. Maybe you put that you make xx amount and that was based on last months pay. Mortgage approval is based on the last 24 months average…not last month. Other items will come up. Work with a experienced mortgage professional and let their experience get you thru it all. Once you have the written Approval, go over it and make sure what the DU is requiring is valid.

At Mortgage Consumer we strive to educate you about mortgages and get you several options on a new home loan. We are here to answer questions and work hard using our many years of experience. Get a Home Mortgage can be easy by working with an experienced lender.