Refinance & Mortgage Foreclosure Specialists

What Is Mortgage Pre-Approval and How Do I Get It?

Pre-approval on an Arizona mortgage is a process that can really help you to get a good mortgage rate, but it's important to make a few distinctions about it. First of all, it's not the same as pre-qualification; secondly, not all letters labeled "pre-approval" really mean it. Want to know more details? Let's take a closer look.

Pre-approval and pre-qualification are very different things. Pre-qualification is often viewed as the "window shopping" of acquiring mortgages. Essentially, pre-qualification gives you a quote from a lender with absolutely no obligation to accept; you provide some basic information on your financial status, such as your credit, debts, assets, and income, and they give you a quote without actually running your credit. This is a great way to look around for a good lender-but you shouldn't base your whole decision on this, as the quote may change once your actual credit is included.

That's where pre-approval rates come in. Here, the mortgage lender actually does run your credit, and they verify your documentation too. Usually, in order to get a pre-approval quote, you need to have submitted a mortgage application, and sometimes you must have paid an application fee to the prospective lender. However, you still have no obligation to accept, as you've not actually entered into a contract with the lender.

You do need to be careful, though; not all the letters you receive which are labeled "pre-qualification" or "pre-approval" really are. If you receive a letter from a lender, and you haven't gone through this process with them, then they're just trying to trick you into thinking that they've done something special for you. It's not true; only pay attention to such letters if you've actually done what it takes to get a real pre-approval.

So how do you get a pre-approval quote? Well, it's really quite simple: you find a lender who suits your needs, and then you go through the process about which you've just read-ask them about pre-approval quotes, apply for a mortgage accordingly, maybe pay an application fee, and wait for the letter. As soon as you have that, you can start shopping for a home-that way, you can narrow your home search to a certain price bracket. This will streamline your search and make it that much easier to get into your dream home.

So now you know a little more about pre-approval quotes (and pre-qualification ones, too!). You're now better prepared to go out there and get that home you've been wanting for so long-because you can get a pre-approval quote to shop with, all while avoiding an actual commitment before you're ready! Remember: ignore such letters from lenders you've never gone through the application process with, because they're just trying to fool you.