and Pre-approval on a Mortgage
real estate broker will "pre-qualify" you for a mortgage
before you start house-hunting. This process includes analyzing
your income, assets and present debt to estimate what you
may be able to afford on a house purchase. Mortgage brokers,
or a lender's own mortgage counselors can also calculate the
same sort of informal estimate for you.
mortgage "pre-approval" is another thing entirely.
It means that you have in hand a lender's written commitment
to put together a loan for you (subject only to the particular
house you want to buy passing the lender's appraisal).
makes you a strong buyer, welcomed by sellers. With most
other purchasers, sellers must tie the house up on a contract
while waiting to see if the would-be buyer can really obtain
side is that you must pay application fees to cover the lender's
paperwork in verifying your employment, income, assets, debts
and credit rating. If you later decide not to use that particular
lender, you'd have to start all over again elsewhere - with
will also speed up the entire mortgage procedure once you've
found the house you want. The only remaining question
will be whether the house will "appraise" for enough to warrant