Pre-Qualification vs. Pre-Approval

Pre-Qualification vs. Pre-Approval

Prequalification and Pre-approval may sound like the same thing but they are actually two very different things. Getting these two mixed could be a mistake you really don’t want to make. So if you’re looking for a place to start in your home buying journey check out the video and find out the difference between getting pre-qualified and pre-approved!

 

 

What do you think happened?

What do you think happened to Fast Freddie and Thorough Theodore?

  1. Fast Freddie and Thorough Theodore both closed right on time
  2. Fast Freddie closed on time, but Thorough Theodore closed late.
  3. Fast Freddie’s Mortgage loan fell through, and Thorough Theodore closed right on time.
  4. Both Mortgage loans fell through. Poor Freddie and Theodore!

 

If you answered #3 you’re correct! Turns out that Freddy’s prequalification had a lot of PRE, very little QUALIFICATION, and a complete absence of APPROVAL.

A prequalification can be done quickly, but without verified information, it may not be worth the paper it’s printed on. A pre-approval is much more thorough and accurate. Once you have one of these in hand, your credit and income are well known. All you’ll probably need to do next is find the right house.

In other words, a little extra spent up front, can actually save you lots of time in the end.

If you want to get pre-approved before you start home shopping, please reach out to one of our licensed loan officers. We’ll be happy to help!

OUR MISSION STATEMENT

Our mission is to be the home financing partner that you trust to serve your family, friends, and community. Through our family of dedicated mortgage professionals, our commitment is to deliver an exceptional experience. Our unwavering dedication to integrity, honesty, and ethics is the foundation of all of our relationships.

ABOUT INLANTA MORTGAGE

Headquartered in Brookfield, Wisconsin, Inlanta Mortgage is a growing mortgage banking firm committed to quality mortgage lending, ethical operations and strong customer service.

Inlanta Mortgage offers Fannie Mae/Freddie Mac agency products, as well as a full suite of jumbo and portfolio programs. The company is an agency approved lender for Freddie Mac and Fannie Mae, FHA/VA, FHA 203K and USDA. Inlanta Mortgage also offers numerous state bond agency programs. Review Inlanta’s mortgage loan programs.

Inlanta Mortgage was recently named a Top Workplace for a third time in 2015. Inlanta has also received the Platinum Million Dollar USDA Lender Award and has been recognized as a Top Mortgage Employer by National Mortgage Professional and a Top 100 Mortgage Banking Company and 100 Best Mortgage Companies to Work For by Mortgage Executive Magazine.

Inlanta Mortgage, Inc. NMLS #1016.

Get Mortgage Pre-Approval Before House Hunting!

Bring Your Pre-Approval

House Hunting? You Need a Pre-Approval Letter

Will you be dropping by a few open houses this weekend? Take a pre-approval letter with you! Pre-approvals provide house hunters with a number of benefits:

  • Your Realtor knows you’re serious when you present a pre-approval letter.
  • Sellers prefer to negotiate with prospective buyers with pre-approvals over simple pre-qualification letters – often times sellers won’t even consider your offer without a pre-approval letter from a licensed mortgage loan originator!
  • Your mortgage pre-approval letter takes into consideration down payment percentages, interest rates, property taxes and mortgage insurance – which makes it clearer to you (the buyer) just how much you can truly afford to borrow.
  • A solid pre-approval will help you get your loan processed faster. Getting a
    pre-approval could take your offer from a 60 day closing to as little as 30 days.

Pre-Approvals are Not Pre-Qualifications

Pre-qualifications will give you an idea of what kind of loan you may qualify for and can typically be completed in minutes. This informal estimate may be just fine for those in the very early stages of the home buying process.

Pre-approvals are more involved and are a better indication of your ability to fully qualify for a mortgage loan. In order to get pre-approved, we will gather all the information we need to begin the loan process. This typically involves a credit check as well as income and asset verification. Typical documents required for a pre-approval include:

  • Bank statements
  • W-2s
  • Drivers License/Identification
  • Paystubs
  • Proof of IRAs or retirement accounts and their balances

Apply Online for Your Pre-Approval

Securely submit your application online! Click here to submit and application now or use our branch locator to find a licensed mortgage loan orginator near you.

Inlanta Mortgage loan officers are dedicated to helping you achieve your dreams of homeownership. Review testimonials for Inlanta Mortgage loan officers here. All testimonials were published with the express permission of our customers. Last names have been omitted to ensure their privacy.

Inlanta Mortgage is proudly celebrating twenty years in business. Learn more about Inlanta’s twenty year history here.

Inlanta Mortgage offers Fannie Mae/Freddie Mac agency products, as well as a full suite of jumbo and portfolio programs. The company is fully delegated HUD-FHA including FHA 203K, VA, and USDA approved. Inlanta Mortgage also offers numerous state bond agency programs. Review Inlanta’s mortgage loan programs here.

Inlanta Mortgage is a multi-state mortgage banker based out of Brookfield, Wisconsin. NMLS# 1016. Inlanta Mortgage is proud to be a recent recipient of a 2012 Top Workplace Award.

Home Prices Jump 10.2%

Home Prices Jump

Home Prices Jump

Home prices experienced their biggest year-over-year increase in February in nearly seven years. According to the CoreLogic February Home Price Index report, home prices nationwide, including distressed sales, increased by 10.2 percent on a year-over-year basis from a year ago. This jump in home prices is the biggest year-over-year increase since March 2006. This is the 12th consecutive monthly increase in home prices nationally. On a month-over-month basis, including distressed sales, home prices increased by 0.5 percent from January.

Time To Buy

With home prices on the rise, buyers on the fence regarding homeownership may want to consider jumping in the ring. Home affordability continues to be high with average 30-fixed mortgage rates hovering around 4%.

In the news, we hear about the difficulties first time home buyers experience when trying to obtain credit – but many buyers really don’t know if they can qualify for a mortgage. There are loan programs available that allow for no down payments and others that require as little as 3% down. If a down payment is your hurdle to homeownership, consult a licensed originator to discuss your options. Loan officers can counsel home buyers on the steps they would need to take to qualify for a mortgage. Pre-approvals for mortgage loans are a free service loan officers provide and buyers are under no obligation.

First Time Home Buyer Resources

Here are a few of our most popular blog posts for first time home buyers:

Contact a licensed Inlanta Mortgage loan originator to discuss your home financing needs. Use our branch locator to find an office near you.

Inlanta Mortgage is proudly celebrating twenty years in business. Learn more about Inlanta’s twenty year history here.

Inlanta Mortgage offers Fannie Mae/Freddie Mac agency products, as well as a full suite of jumbo and portfolio programs. The company is fully delegated HUD-FHA including FHA 203K, VA, and USDA approved. Inlanta Mortgage also offers numerous state bond agency programs. Review Inlanta’s mortgage loan programs here.

Inlanta Mortgage is a multi-state mortgage banker based out of Brookfield, Wisconsin. NMLS# 1016. Inlanta Mortgage is proud to be a recent recipient of a 2012 Top Workplace Award.

Mortgage Myths

Mortgage Myths

There is a lot of misinformation floating around regarding mortgages. By debunking the following mortgage myths we hope to help new home buyers better understand and approach the home buying process.

Mortgage Myths Debunked

1. Minimum Down Payment is 5% – There are a number loan programs available that allow home buyers to put down less than 5%. Contact a licensed mortgage loan officer to discuss low down payment options (including FHA) and no down payment options (USDA and VA).

2. Bankruptcies Not Allowed – Each loan program has specific requirements regarding the length of time that must have passed since the completion of your bankruptcy. Contact a licensed mortgage loan officer to determine which loan program is best for your unique financial situation.

3. Pre-Approvals Guarantee a Complete Loan Approval – While a pre-approval indicates you are qualified for a mortgage, a number of things can derail your financing before your actual closing date. During the formal loan process, underwriters thoroughly check your income, assets, and debt. If you run up credit card balances or lose your job before closing – your financing can fall through. Be careful with your finances during the loan process to ensure a smooth closing.

Addtional Resources for New Home Buyers

Are you a new home buyer in need of additional information? Check out first time home buying resources and additional information on mortgage myths below:

Inlanta Mortgage is proudly celebrating twenty years in business. Learn more about Inlanta’s twenty year history here.

Inlanta Mortgage offers Fannie Mae/Freddie Mac agency products, as well as a full suite of jumbo and portfolio programs. The company is fully delegated HUD-FHA including FHA 203K, VA, and USDA approved. Inlanta Mortgage also offers numerous state bond agency programs. Review Inlanta’s mortgage loan programs here.

Inlanta Mortgage is a multi-state mortgage banker based out of Brookfield, Wisconsin. NMLS# 1016. Inlanta Mortgage is proud to be a recent recipient of a 2012 Top Workplace Award.

Get Pre-Approved for a Mortgage

Pre-Approved Mortgage

Get Pre-Approved

First of all, let’s make an important clarification. Pre-qualifications are not the same as pre-approvals.

Pre-qualifications will give you an idea of what kind of loan you may qualify for and can typically be completed in minutes. This informal estimate may be just fine for those in the very early stages of the home buying process.

Pre-approvals are more involved and are a better indication of your ability to fully qualify for a mortgage loan. In order to get pre-approved, we will gather all the information we need to begin the loan process. This typically involves a credit check as well as income and asset verification. Typical documents required for a pre-approval include:

  • Bank statements
  • W-2s
  • Drivers License/Identification
  • Paystubs
  • Proof of IRAs or retirement accounts and their balances

Good Faith Estimate

After successfully getting pre-approved for a mortgage, you will receive a Good Faith Estimate (GFE). A GFE is a brief document that details the likely terms of the loan, including interest rate, loan type, and closing costs. All that said, a pre-approval is not a binding agreement between you and your lender – final loan approvals require the attention of our experienced underwriting team.

Benefits of Getting  Pre-Approved

Getting pre-approved has several advantages over basic pre-qualifications:

  • Your Realtor knows you’re serious when you present a pre-approval letter – and will work even harder on your behalf!
  • Sellers prefer to negotiate with prospective buyers with pre-approvals over simple pre-qualification letters – often times sellers won’t even consider your offer without a pre-approval letter from a licensed mortgage loan originator!
  • Your mortgage pre-approval letter takes into consideration down payment percentages, interest rates, property taxes and mortgage insurance – which makes it clearer to you (the buyer) just how much you can truly afford to borrow.
  • A solid pre-approval will help you get your loan processed faster. Getting a pre-approval could take your offer from a 60 day closing to as little as 30 days.

Shop Smart

You’re not likely to shop for a car without knowing what you can afford, so why would you house shop without knowing what type of loan you may qualify for? A pre-approval helps you make educated decisions about one of the most important investments of your life.

Contact an Inlanta Mortgage loan officer near you and begin the pre-approval process today to enjoy a new home this year!

Inlanta Mortgage offers Fannie Mae/Freddie Mac agency products, as well as a full suite of jumbo and portfolio programs. The company is fully delegated HUD-FHA including FHA 203K, VA, and USDA approved. Inlanta Mortgage also offers numerous state bond agency programs. Review Inlanta’s mortgage loan programs here.

Inlanta Mortgage is a multi-state mortgage banker based out of Brookfield, Wisconsin. NMLS# 1016. Inlanta Mortgage is proud to be a recent recipient of a 2012 Top Workplace Award.

3 First-Time Home Buyer Tips

First Time Home Buyers

Buying a home is serious business. With 15 and 30-year fixed rate mortgages holding steady and rising home prices, many people are embarking on this great adventure. For those of you ready to make the leap from renting to owning – here are just a few tips!

1.  Check the selling prices of homes in the area you wish to live. Web sites such as Zillow and Trulia can give you a general idea of what you should expect to pay for what you want. You can also do a quick search of actual listings in your area on a number of web sites hosted by reputable Realtors, including the National Association of Realtors. In Wisconsin, you can search for homes at First Weber.

2.  See what you can afford and get a pre-approval letter. Look at your budget and determine how a house fits into it. Fannie Mae recommends that buyers spend no more than 28% of their income on housing costs. Go much past 30% and you risk becoming house poor. Visit our blog post How Much House Can You Afford? This post will help you understand how Inlanta Mortgage computes the amount you are pre-approved to purchase. Click here to learn more about the importance of getting pre-approved.

3.  Consult a licensed real estate agent. Realtors are trained to help home buyers objectively examine properties in terms of school districts, safety, zoning, and much more. Don’t stop your inspection of a prospective home at the property line – the area surrounding your new home will undoubtedly affect how happy you will be in it.

Ready to begin? Contact a licensed Inlanta Mortgage loan consultant today! Your mortgage loan consultant can help you determine which of the following first time home buyer loan programs are best for you:

Conventional Mortgage Loans – Traditional program that usually requires 5% down and offers competitive interest rates.

FHA Mortgages – FHA mortgages enable the borrower to put as low as 3.5% down and are available to borrowers with less than perfect credit.

USDA Mortgages – USDA mortgage loans are designed to help lower income individuals or households purchase homes in rural areas.

VA Mortgages – VA mortgage loans are federally guaranteed mortgage loans for veterans that don’t require a down payment.

Inlanta Mortgage is proudly celebrating twenty years in business. Learn more about Inlanta’s twenty year history here.

Inlanta Mortgage offers Fannie Mae/Freddie Mac agency products,  as well as a full suite of jumbo and portfolio programs. The company is  fully delegated HUD-FHA including FHA 203K, VA, and USDA approved.  Inlanta Mortgage also offers numerous state bond agency programs. Review Inlanta’s mortgage loan programs here.

Inlanta Mortgage is a multi-state mortgage banker based out of Brookfield, Wisconsin. NMLS# 1016. Inlanta Mortgage is proud to be a recent recipient of a 2012 Top Workplace Award.

Pre-Approvals for Christmas

House for Christmas

What could be a better Christmas gift than a new home? While it’s unlikely anyone will buy you one – you could always treat yourself. Get pre-approved for a mortgage and take Christmas shopping to a new level!

Pre-Approval Process

First of all, let’s make an important clarification. Pre-qualifications are not the same as pre-approvals.

Pre-qualifications will give you an idea of what kind of loan you may qualifiy for and can typically be completed in minutes. This informal estimate may be just fine for those in the very early stages of home buying process.

Pre-approvals are more involved and are a better indication of your ability to fully qualify for a mortgage loan. With a pre-approval, we will gather all the information we need to begin the loan process. This typically involves a credit check as well as income and asset verification. Typical documents required for a pre-approval include:

  • Bank statements
  • W-2s
  • Drivers License/Identification
  • Paystubs
  • Proof of IRAs or retirement accounts and their balances

Good Faith Estimate

After successfully completing the pre-approval process, you will receive a Good Faith Estimate (GFE). A GFE is a brief document that details the likely terms of the loan, including interest rate, loan type, and closing costs. All that said, a pre-approval is not a binding agreement between you and your lender – final loan approvals require the attention of our experienced underwriting team.

Pre-Approval Benefits

Pre-approvals have several advantages over pre-qualifications:

  • Your Realtor knows you’re serious when you present a pre-approval letter – and will work even harder on your behalf!
  • Sellers prefer to negotiate with prospective buyers with pre-approvals over simple pre-qualification letters – often times sellers won’t even consider your offer without a pre-approval letter from a licensed mortgage loan originator!
  • Your mortgage pre-approval letter takes into consideration down payment percentages, interest rates, property taxes and mortgage insurance – which makes it clearer to you (the buyer) just how much you can truly afford to borrow.
  • A solid pre-approval will help you get your loan processed faster. Getting a pre-approval could take your offer from a 60 day closing to as little as 30 days – with Inlanta’s express underwriting you may be able to close even faster!

Shop Smart

You’re not likely to shop for a car without knowing what you can afford so why would you house shop without knowing what type of loan you may qualify for? A pre-approval helps you make educated decisions about the most important investment of your life.

Contact an Inlanta Mortgage loan officer near you and begin the pre-approval process today to enjoy a new home in 2013! Happy Holidays & Happy House Shopping!

Inlanta Mortgage offers Fannie Mae/Freddie Mac agency products, as well as a full suite of jumbo and portfolio programs. The company is fully delegated HUD-FHA including FHA 203K, VA, and USDA approved. Inlanta Mortgage also offers numerous state bond agency programs. Review Inlanta’s mortgage loan programs here.

Inlanta Mortgage is a multi-state mortgage banker based out of Brookfield, Wisconsin. NMLS# 1016. Inlanta Mortgage is proud to be a recent recipient of a 2012 Top Workplace Award.

Tips for First Time Home Buyers

Tips for First Time Home Buyers

Are You Ready to Buy Your First Home?

Buying a home is serious business. With 15 and 30-year fixed rate mortgages at record lows, many people are embarking on this great adventure. For those of you ready to make the leap from renting to home owning – here are just a few tips!

1.  Check the selling prices of homes in the area you wish to live. Web sites such as Zillow and Trulia can give you a general idea of what you should expect to pay. You can also do a quick search of actual MLS listings in your area on a number of web sites hosted by reputable Realtors, including the  National Association of Realtors. In Wisconsin, you can search by MLS# at First Weber.

2.  See what you can afford and get a pre-approval letter.  Look at your budget and determine how a house fits into it. Fannie Mae recommends that buyers spend no more than 28% of their income on housing costs. Go much past 30% and you risk becoming house poor. Visit our blog post How Much House Can You Afford? This post will help you understand how Inlanta Mortgage computes the amount you are pre-approved to purchase. Click here to learn more about the importance of getting pre-approved.

3.  Consult a licensed real estate agent. Realtors are trained to help home buyers objectively examine properties in terms of school districts, safety, zoning, and much more. Don’t stop your inspection of a prospective home at the property line – the area surrounding your new home will undoubtedly affect how happy you will be in it.

Ready to begin? Contact a licensed Inlanta Mortgage loan consultant today! Your mortgage loan consultant can help you determine which of the following first time home buyer loan programs are best for you:

Conventional Mortgage Loans – Traditional program that usually requires 5% down and offers competitive interest rates.

FHA Mortgages – FHA mortgages enable the borrower to put as low as 3.5% down and are available to borrowers with less than perfect credit.

USDA Mortgages – USDA mortgage loans are designed to help lower income individuals or households purchase homes in rural areas.

VA Mortgages – VA mortgage loans are federally guaranteed mortgage loans for veterans that don’t require a down payment.

Inlanta Mortgage offers Fannie Mae/Freddie Mac agency products,  as well as a full suite of jumbo and portfolio programs. The company is  fully delegated HUD-FHA including FHA 203K, VA, and USDA approved.  Inlanta Mortgage also offers numerous state bond agency programs. Review Inlanta’s mortgage loan programs here.

Inlanta Mortgage is a multi-state mortgage banker based out of Brookfield, Wisconsin. NMLS# 1016. Inlanta Mortgage is proud to be a recent recipient of a 2012 Top Workplace Award.

Get Pre-Approved for a Mortgage

Get Pre-Approved for a Mortgage Today!

Pre-approval or prequalification? Many new home buyers ask, “What’s the difference?”

A prequalification is an informal estimate of how much you can afford for a house. Your lender uses the information you provide about your income, finances, and credit history to make an educated guess about your ability to buy a home. What is important to note is that a prequalification doesn’t require a credit report and generally doesn’t provide you with any real credibility. A prequalification letter is mainly for shoppers in the early stage of the home buying process that want a basic idea about how much they can afford.

Getting a pre-approval for a mortgage loan is a different story. Pre-approvals carry a lot more weight and are a better indication of your ability to fully qualify for a mortgage loan. Lenders collect many documents during the pre-approval process including pay stubs, a credit report, bank statements, and tax documents.

After Inlanta Mortgage has thoroughly reviewed your documents and verified all pertinent information, he or she will issue you a mortgage loan approval letter detailing a specific amount that you are pre-approved to borrow. Click here to speak with a licensed mortgage loan officer near you about the mortgage loan pre-approval process.

Pre-approvals have several advantages over prequalifications:

  • Your Realtor knows you’re serious when you present a pre-approval letter – and will work even harder on your behalf!
  • Sellers prefer to negotiate with prospective buyers with pre-approvals over simple prequalification letters – often times sellers won’t even consider your offer without a pre-approval letter from a licensed mortgage loan originator!
  • Your mortgage pre-approval letter takes into consideration down payment percentages, interest rates, property taxes and mortgage insurance – which makes it clearer to you (the buyer) just how much you can truly afford to borrow.
  • A solid pre-approval will help you get your loan processed faster. Getting a pre-approval could take your offer from a 60 day closing to as little as 30 days – with Inlanta’s express underwriting you may be able to close even faster!

All that said, a pre-approval letter is not a binding agreement between you and your lender. Let’s say you put in an offer on a house and begin the formal mortgage loan process. Your lender will order an appraisal on the house you intend to buy and the loan will be subject to the details of that appraisal. What if you lose your job, interest rates rise, or you run up your credit cards over the holidays? All these factors will affect your ability to afford the amount your were originally pre-approved for.

Pre-approval letters trump prequalification letters in almost all scenarios.  If you are a serious shopper and want to carry more authority with sellers and real estate agents – click here to find a loan officer near you.

Inlanta Mortgage offers Fannie Mae/Freddie Mac agency products, as well as a full suite of jumbo and portfolio programs. The company is fully delegated HUD-FHA including FHA 203K, VA, and USDA approved. Inlanta Mortgage also offers numerous state bond agency programs. Review Inlanta’s mortgage loan programs here.

Inlanta Mortgage is a multi-state mortgage banker based out of Brookfield, Wisconsin. NMLS# 1016Inlanta Mortgage is proud to be a recent recipient of a 2012 Top Workplace Award.

 

Get Pre-Approved! Why Do You Need a Pre-Approval Anyway?

Pre-approval or prequalification? Many new home buyers ask, “What’s the difference?”

A prequalification is an informal estimate of how much house you can afford. Your lender uses the information you provide about your income, finances, and credit history to make an educated guess about your ability to buy a home. What is important to note is that a prequalification doesn’t require a credit report and is generally doesn’t provide you with any real credibility. A prequalification letter is mainly for shoppers in the early stage of the home buying process that want a basic idea about how much they can afford.

Getting a pre-approval for a mortgage loan is a different story. Pre-approvals carry a lot more weight and are a better indication of your ability to fully qualify for a mortgage loan. Lenders collect many documents during the pre-approval process including pay stubs, a credit report, bank statements, and tax documents.

After your lender has thoroughly reviewed your documents and verified all pertinent information, he or she will issue you a mortgage loan approval letter detailing a specific amount that you are pre-approved to borrow. Click here to speak with a licensed mortgage loan officer near you about the mortgage loan pre-approval process.

Pre-approvals have several advantages over prequalifications:

  • Your Realtor knows your serious when you present a pre-approval letter – and will work even harder on your behalf!
  • Sellers prefer to negotiate with prospective buyers with pre-approvals over simple prequalification letters – often times sellers won’t even consider your offer without a pre-approval letter from a licensed mortgage loan originator!
  • Your mortgage pre-approval letter takes into consideration down payment percentages, interest rates, property taxes and mortgage insurance – which makes it clearer to you (the buyer) just how much you can truly afford to borrow.
  • A solid pre-approval will help you get your loan processed faster. Getting a pre-approval could take you offer from a 60 day closing to as little as 30 days – with Inlanta’s express underwriting you may be able to close even faster!

All that said, a pre-approval letter is not a binding agreement between you and your lender. Let’s say you put in an offer on a house and begin the formal mortgage loan process. Your lender will order an appraisal on the house you intend to buy and the loan will be subject to the details of that appraisal. What if you lose your job, interest rates rise, or you run up your credit cards over the holidays? All these factors will affect your ability to afford the amount your were originally pre-approved for. (Stay tuned for a post on what not do when you are applying for a mortgage – here’s a hint – don’t buy a car.)

Pre-approval letters trump prequalification letters in almost all scenarios.  If you are a serious shopper and want to carry more authority with sellers and real estate agents – click here to access our complete online loan application.

Loans are a lot like the law. It’s all about the documentation and proof. Like Jack McCoy (Law & Order) says, its not what you know but what you can prove. A prequalification is what you know. A pre-approval is the proof.