Preapproval vs. Prequalification

What could be more comforting than the peace of mind that goes with knowing your mortgage is fully approved?

You will have a greatly improved negotiating position when you are preapproved for a mortgage.  Sellers are more apt to negotiate with someone who already has a mortgage approval in hand.  the preapproval letter let's the seller know they are working with a serious buyer.  A preapproved buyer can also close on a property more quickly - another major consideration for a motivated seller.  Obtaining a preapproved mortgage is essential in a "sellers' market" or where supply is limited.

Preapproval uses basic information as well as electronic credit reporting.  It is a true mortgage commitment, which means a commitment to financing your home and an indication of the total mortgage amount available to you.  Our in-house mortgage company - Pacific Access Mortgage, as well as other mortgage lenders, can help you through the preapproval process.  In most cases, there is no charge for this service.  Ask William for more information!

Prequalification, on the other hand, is not a full mortgage approval, but an estimate of what you can afford.  When you prequalify for a mortgage, the lender collects basic information regarding your income, monthly debts, credit history and assets, and then uses this information to calculate an estimated mortgage amount.