Spring is almost here and busy house shopping season is upon use. Are you in the market for a new home? Have you heard that mortgage word "pre-approval"? What does it mean and why do you need it?
House hunting without a pre-approval is like:
• Playing baseball without a bat.
• Bear hunting with no bullets in your gun.
• Asking a surgeon to perform surgery on you prior to getting an MRI or X-Rays.
• Going to the grocery store without your wallet.
• Asking what the car payments are before deciding on the car.
• Asking what your insurance rates are before knowing what coverage you need.
• Shopping for a house and not knowing which ones are actually for sale.
• Test driving a car without a license.
• Going to the dentist to get a tooth pulled before knowing which tooth is infected.
• Travelling across the country without a map.
• Showing up at a concert without tickets.
• Cooking a meal without all the ingredients.
• Driving a car without a speedometer.
• Throwing darts blindfolded.
• Canoeing with one paddle.
All kidding aside, a pre-approval really is important. As a potential home buyer, you will benefit from consulting with a mortgage lender and obtain a pre-approval letter before house hunting.
You may have heard of another term a well, "pre-qualification". What is the difference? A pre-qualification shows you what you can afford and a pre-approval is confirming with verified bank statements, pay stubs and credit reports what you have provided verbally for the sake of achieving a full loan approval.
In order to obtain a pre-qualification or pre-approval you'll want to connect with a loan officer or fill out our short survey here.
For a pre-qualification, this process will determine how much money you will be eligible to borrow before you actually go through an entire loan application process. This process won't 100% guarantee a loan, but is a very important step. During this process, we gather your financial information and make a conditional determination about your qualifications. (Please note: *A pre-qualification is not an approval of credit and does not signify that underwriting requirements have been met.)
Avoid heartache later, by getting pre-approved with us. Gather your paperwork, print necessary documents like online bank statements and set an appointment with us before you begin house hunting.
****Pre-approval is based on a preliminary review of credit information provided to Fairway Independent Mortgage Corporation which has not been reviewed by Underwriting. Final loan approval is subject to a full Underwriting review of support documentation including, but not limited to, applicants’ creditworthiness, assets, and income information, and a satisfactory appraisal. Copyright©2019 Fairway Independent Mortgage Corporation. NMLS#2289. 4750 S. Biltmore Lane, Madison, WI 53718, 1-866-912-4800. Other restrictions and limitations may apply. All rights reserved.