pre-qualified vs. pre-approved vs. loan approval
Think
about buying a home in Atlanta?
These days you better start with financing.
A lot has changed in the last few years, and the ability to
obtain a loan is the most important item on the agenda these days.
When you make your very first call to a mortgage planner also
known as a 'loan officer', you merely supply them with your overall
financial information which would be your income, assets, and
debts. This can be done with a quick phone call and there's
no cost involved. This is basically what is involved in pre-qualified.
Plase
note well that the loan
officer has not actually pulled up your credit to verify just
yet. The reason you'd call a mortgage planner is that you
want to discuss your ability to purchase, what your monthly payments
would be and so forth but it is not a thorough look at this
point. A safe rule of thumb on pre-qualifying
used to be multiply 2.5 times your yearly income, then minus your
monthly debt, and that's what you can afford. All that
is...it's a very safe place to start. Now you know why
pre-qualification has no real power.
When you get pre-approved, you are supplying the loan officer with more detailed picture of your financial ability to purchase. You fill out a mortgage application for which you will pay a fee, then you must additionally get all documentation regarding your bank information, last two years income tax filings, your credit will be checked with credit reporting companies among other supporting documents the mortgage broker will need. Now you have a sharper idea of the interest rate, monthly payments, and you'll get a conditional commitment in writing which permits you to look for a home at or below a certain price level. Now as a home buyer, you have some power as the sellers will recognize you are one step closer to loan approval. In this market especially, the sellers will know you are a serious buyer and the "buyer" who put an offer in on the house you're interested in purchasing but did not attach a letter from a bank. If you are looking at foreclosures, the bank or corporate owners won't even look at an offer without a pre-approval letter attached.
Once you place your offer and it is accepted, during your due diligence period, an appraisal will be ordered and that property must appraise at the contract price or above sales price. Then the underwriter of your mortgage will once again check your credit to be certain nothing else has changed. They may check to see that you have not run up new credit or that you are still employed. They may even ask the appraiser for evaluation of possible problems such as structural issues, or to make sure the home is still worth what they are lending on it. Once the bank will commit to lend, you're good to go. Happiness and good health in your new home!
When you get pre-approved, you are supplying the loan officer with more detailed picture of your financial ability to purchase. You fill out a mortgage application for which you will pay a fee, then you must additionally get all documentation regarding your bank information, last two years income tax filings, your credit will be checked with credit reporting companies among other supporting documents the mortgage broker will need. Now you have a sharper idea of the interest rate, monthly payments, and you'll get a conditional commitment in writing which permits you to look for a home at or below a certain price level. Now as a home buyer, you have some power as the sellers will recognize you are one step closer to loan approval. In this market especially, the sellers will know you are a serious buyer and the "buyer" who put an offer in on the house you're interested in purchasing but did not attach a letter from a bank. If you are looking at foreclosures, the bank or corporate owners won't even look at an offer without a pre-approval letter attached.
Once you place your offer and it is accepted, during your due diligence period, an appraisal will be ordered and that property must appraise at the contract price or above sales price. Then the underwriter of your mortgage will once again check your credit to be certain nothing else has changed. They may check to see that you have not run up new credit or that you are still employed. They may even ask the appraiser for evaluation of possible problems such as structural issues, or to make sure the home is still worth what they are lending on it. Once the bank will commit to lend, you're good to go. Happiness and good health in your new home!
RE/MAX Paramount Properties 678-595-5283 Direct
Or 888-940-0074 Toll Free Office
Atlanta Real Estate Agents, Alpharetta GA Homes for Sale, Dunwoody GA Homes for Sale, Atlanta Real Estate & Atlanta Homes for Sale 
Gwinnett Homes for Sale
Atlanta Real Estate Blog, Cumming GA Homes 
