A Quality Pre-Approval Process
One of the best feelings you can have during your home buying experience is the confidence of knowing you are truly approved with nothing lurking around the corner. There are no short cuts to the path of obtaining pre-approval that has accounted for all variables associated with your unique loan file. And regardless of the complexities that may exist, you deserve a quality pre-approval process, and we have the know-how and systematic process to ensure you get exactly that.
A preapproval is not a loan approval, rate lock, guarantee or commitment to lend. An underwriter must review and approve a complete loan application after you are preapproved in order to obtain financing.
Do you need a pre-approval?
Yes, 100%. There are two things a seller and their agent will review: the contractual offer and your pre-approval letter. A buyer without a pre-approval letter will not be considered. Behind the scenes, we have a system and process, which includes an underwriter’s review to ensure your approval is solid.
How do you get a pre-approval?
There are three ways to get the process started; in person, over the telephone or online. We prefer speaking with you, whether in person or by phone to discuss your home purchase plans and, in that session, we are not only able to complete your application and address your questions, but we can also detect any potential hurdles or issues. We have several links to our online application throughout our website, should you prefer to utilize that tool instead. It takes about 10 minutes to complete and we will connect with you in short order once notified of your application.
What are the differences between pre-approval and pre-qualification?
There is no standard industry definition for either phrase, but you will find varying definitions while searching online mortgage glossaries. Truly, what matters most is not the phrase, ‘pre-approval’ or ‘pre-qualification’ rather the quality of the pre-approval you’ve secured at the point of placing an offer on that special home. Here are the quality levels of a pre-approval:
- Underwritten Pre-Approval. An underwriter is the final word on whether you will be approved for the financing you seek. We offer the ability to have your loan file and associated documentation reviewed by an underwriter before placing an offer on a home. An approval letter indicating an underwritten approval offers the seller better assurance the buyer can follow through to the end.
- Document Pre-Approval. Providing your documentation to substantiate an automated approval is wise but a loan officer’s review is not an adequate replacement for an underwriter’s review, therefore the documented pre-approval is indeed inferior to an underwritten pre-approval..
- Automated Pre-Approval. You have provided an application, credit has been pulled, and positive feedback from an automated underwriting software has been received. An automated pre-approval is a necessary formality, but it is far from being as reliable as an underwritten pre-approval.