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 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.

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.

Mortgage Mythbusting

Mortgage Mythbusting

The world is flat. The sun revolves around the earth. Banks aren’t lending. What do these statements have in common? Well, you can probably see where we are going with this…but those statements are all false.

So, what mortgage myths are out there that need to be de-bunked?

Myth #1 – Banks aren’t lending.

We are lending. Inlanta Mortgage continues to see a record number of home buyers applying and qualifying for mortgage loans. Although, lending restrictions may be a bit tighter than they used to be – Inlanta customers have a number of home financing programs to choose from including low or no down payment options.

Myth #2 – APR & Interest Rates are the same thing.

Wrong. The interest rate is the price you pay to borrow money. APR (annual percentage rate) includes other fees that you may have financed into your mortgage loan. Don’t be fooled when shopping for a mortgage – if an APR is suspiciously low than you will likely be required to pay closing costs and other fees up front. The decision to finance closing costs and fees in your mortgage loan is a personal decision based on number of factors. Consult your mortgage lender to determine what financing options are best for your specific situation.

Myth #3 – You can be pre-approved for a mortgage without a credit check.

If you’ve been told you that are pre-approved for a mortgage loan, but the lender never verified your employment or pulled your credit- you have not been properly pre-approved. More than likely – you have been pre-qualified. Pre-qualifying is not the same as a pre-approval. Pre-approvals have several advantages over prequalification. Read our blog post Get Pre-Approved for more information on pre-approvals.

Honest and ethical business practices are the hallmark of the Inlanta Mortgage’s culture. Our lending professionals strive to provide the best level of service to each and every mortgage loan customer. Are you buying a home? Find a licensed mortgage lender near you to discuss your unique home financing needs.

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.