Why get pre-approved?

A few years back when you provided your agent with some financial information, you were good to go. Things have changed. Sellers are wiser and many insist that buyers be pre-approved before accepting an offer.

What is the difference between being pre-qualified and being pre-approved? Isn't one as good as the other?

Being pre-approved is the first thing you do when you speak to a lender. You provide them with financial information verbally or via e-mail. With that information in hand a lender can tell you approximately what you can afford to spend on a home. Keeping in mind that nothing is verified and a credit bureau report is not obtained. A pre-qualification is just that, a guesstimate of what you can afford.

The next step, and the most crucial in today's market, is to be pre-approved. Much of this can be done via fax. Many lenders will pre-approve at no cost to you. A loan application will be taken and you will review the disclosures appropriate to your loan type. Most importantly, your assets, credit and income will be verified. With a pre-approval, your loan is underwritten and a commitment to lend is issued. All commitments are subject to an acceptable appraisal, title work and any conditions on your loan being met.

Getting pre-approved isn't only for the sellers benefit. A pre-approval will give you comfort in knowing that you have a loan. A mortgage pre-approval will certainly help to give you an edge when you are ready to place an offer. A mortgage pre-approval certainly helps to avoid disappointment.

If you are serious about looking for a home, don't prolong the inevitable. You will need a mortgage to buy your dream home --- so do it today!

Tip: It always wise to use a mortgage lender familiar with processing loans in the community you plan on residing.

Credit score helps to evaluate a borrower's creditworthiness and is determined on the basis of your credit record. Log onto Mortgagefit.Com and learn how to score well as far as credit report is concerned.