Being pre-approved - Sunset Mortgage Company

Are you pre-qualified or pre-approved for a loan?
Before even looking or shopping for a new home, you should meet or speak with the Sam Croskell TEAM so we can figure out how much you can afford. This will put you in a better position as a buyer. It's important to understand the difference between being pre-qualified for a loan and pre-approved for a loan.

The distinction between the two terms will be crucial when you decide to make an offer on a house.

To be pre-qualified for a loan, a qualified professional will collect general information about your debt, income, and assets. We’ll have a basic idea of your credit profile, income, down payment and closing cost contribution. From this information we have a broad idea of the loan programs which may work for you and a rough idea of the amount you're "qualified" to borrow. This akin to someone having a learner's permit to drive a car - but don't yet have a license or the required insurance to legally be on the road.

Being pre-qualified is just an estimate of what you are eligible to borrow, not a commitment to lend. Obtaining pre-approval for a loan gives you competitive advantage when the time comes to write an offer for a home because you have been approved for a loan for a specified amount.

For gaining pre-approval, we'll complete a mortgage application, you'll provide documentation to verify employment, assets and financial status such as W-2 forms, bank records and perhaps credit card statements. In some cases, this process can be compressed, pending some supporting materials. But as a solid pre-approval from a respected mortgage professional can be the difference in a smooth transaction and a nightmare quagmire, make certain you're working with someone who doesn't cut corners relating to your financial well-being.

We’ll review your mortgage options and submit your application to a lender best meeting your needs. Once the application process is complete you will receive a pre-approval letter indicating the amount your lender is willing to lend you for your home.

A pre-approval letter is not binding on the lender; it is subject to an appraisal of the home you wish to purchase and certain other conditions.

If your financial situation changes (e.g. you run up your credit card debt, your credit report changes, you lose your job, etc.), interest rates rise or a specified expiration date passes, we'll review your situation and recalculate your mortgage amount accordingly.

But the Sam Croskell TEAM works hard to find a way to YES for your home financing, whether purchase, refinance or equity retrieval.