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Home Loan Pre-Qualification vs. Pre-Approval

by Alan Daniels

Home Loans In Colorado Springs

Pre-Qualification is the first step in the mortgage financing process. You will answer a few questions to provide the lender with a quick idea of your income, existing debt, total savings and information on any co-borrowers.
 
A Pre-Approval is a much stronger documentation as it is in writing and shows that you have the full support of the lender. It means the Loan Application has been completed and reviewed by an underwriter. This is very important in saving you any hiccups in the loan process leading up to closing. The underwriter will review your income, debt ratio, and savings. You will have an exact amount that you qualify for from this point. Another reason why pre-approval is necessary before viewing homes. A pre-approval looks much stronger to a potential home seller showing that the financing is in place, and may make the difference in getting a home that has multiple offers on it. A pre-qualification is nice, but a pre-approval is the best way to go from beginning to end.

FHA Loan Limits Increased!

by Alan Daniels
The FHA loan limits have been raised to $325,000.00 in El Paso County.  If you are buying a home in this price range this is great news, as all of the underwriting requirements for conventional loans have been tightening.  FHA is currently not credit score driven.  It is payment history driven.

Displaying blog entries 1-2 of 2

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