WHAT DOES PRE-QUALIFIED MEAN?
Think of pre-qualification as the first step, like testing the waters in the mortgage process. You provide your lender, First Advantage Mortgage, with an overview of your finances, and they’ll give you a rough estimate of the loan amount you might qualify for. It’s also a chance to talk with a mortgage expert about your options, goals, and needs.
To be clear: pre-qualification isn’t a guaranteed loan offer. It just gives you an idea of the loan amount you might qualify for. While it doesn’t hold as much weight as pre-approval, it can be helpful when making an offer.
Because pre-qualification isn’t a firm offer or guarantee of a loan, you’re not committed to using that lender; you can still shop around for other lenders even after being pre-qualified.
Pre-Qualification Letter After pre-qualification, First Advantage Mortgage may provide a pre-qualification letter. It outlines the tentative loan amount they’ve offered. While subject to change with pre-approval, it shows sellers you’re serious about buying and working with a lender. It’s a good first step, though not as strong as a pre-approval letter.
How long does pre-qualification take?
Pre-qualification is quick and easy. Once you gather your financial information, you can submit it online to First Advantage Mortgage and get pre-qualified the same day.
What do I need for pre-qualification? For pre-qualification, you submit your information to First Advantage Mortgage, including:
- Details about your debt, income, and assets
- Basic info about your bank accounts
- A soft credit check
- Your planned down payment
- The desired mortgage loan amount
WHAT DOES PRE-APPROVED MEAN?
Getting pre-approved for a mortgage is step two, diving into the mortgage waters headfirst. It’s a more involved process. You submit a mortgage application to First Advantage Mortgage, and they conduct a thorough credit and background check to ensure you’re ready for the loan. The lender provides a detailed evaluation of the qualified mortgage, including an interest rate estimate.
Pre-Approval Letter Once pre-approved, First Advantage Mortgage gives a pre-approval letter stating the exact loan amount and an interest estimate. This letter is usually valid for 60-120 days, during which you’re free to house-hunt and submit offers. Backed by First Advantage Mortgage, your offers carry more weight.
How long does pre-approval take?
Since First Advantage Mortgage reviews your financial history deeply, pre-approval takes five to ten days.
What do I need for pre-approval?
Pre-approval requires more work, and you need to provide extensive information to First Advantage Mortgage, including:
- Detailed income information (pay stubs from the past 30 days)
- Full credit check
- Bank account information or your two most recent bank statements
- Planned down payment
- Desired mortgage loan amount
- W-2 statements
- Personal (and, if applicable, business) tax returns from the previous two years
READY TO HOUSE HUNT?
Pre-qualification and pre-approval from First Advantage Mortgage give you a mortgage loan estimate, helping you set your budget. Getting pre-approved increases the chances of your offer being accepted in a competitive market. It also speeds up the mortgage process after your offer is accepted.
Pre-qualification from First Advantage Mortgage is faster and requires less paperwork, usually free, and doesn’t impact your credit score. Pre-approval takes more time and effort, sometimes with a fee, but it’s more specific and carries more weight when making an offer.
When seriously considering properties, be either pre-qualified or pre-approved for a mortgage loan with First Advantage Mortgage.
Opinions expressed are solely my own and do not represent the views of my employer.
*Pre-approvals are given to clients who meet qualifying approval criteria and specific loan requirements at the time of applications. Results may vary.
