Many first-time homebuyers are intimidated by the thought of speaking with a lender. It’s easy to put off this part of the process in the beginning, when you can easily start your online South Park home search without speaking to anyone (you secret agent, you!).
What is a Pre-Qualification?
A pre-qualification is provided by a lender to give you an idea of what mortgage amount you may qualify for. Unfortunately, a pre-qualification does dive deep into your financial records, so it cannot paint the whole picture. You should think of it as more of a glance at your finances, and what loan you may be able to obtain.
What is a Pre-Approval?
A pre-approval can really help you refine your home search! To get pre-approved, you’ll complete a mortgage application and provide in-depth documents to the lender so they may further check your financial background.
Typically, your lender will provide a checklist of items to prepare, such as proof of income, assets and debt, and employment verification. Self-employed borrowers will find that lenders require more documentation, such as a year-to-date profit-and-loss statement and records dating back two years. Acquiring a pre-approval also involves a credit check. Now you’ll find out exactly how much you’ll be able to borrow.
When should I speak to a lender?
You can speak with a lender even before you begin your online South Park home search. Getting your ducks in a row early on can be helpful, as you can set goals and get your credit in shape if needed. You may even find you are closer to purchasing than you thought!
If you need help finding your new South Park home, reach out to us today!
When consulting with a lender, shop around! You are under no obligation to use a lender who’s given you a pre-qualification or pre-approval. Purchasing a home is one of the biggest financial commitments that people make, so take the time to explore all mortgage options available to you.
In a competitive real estate market, a pre-approval letter may make your offer stand out against others. In fact, some sellers even require it for buyers submitting an offer.
The Wolf Team
Need help finding a lender so you can buy your dream South Park home? We can help. Reach out to the Wolf Team today at 619-325-4158 or use our contact form.
-The Wolf Team