What is a Pre-Qualification?

Asked by Becky Grubel, Herriman, UT Wed Apr 17, 2013

All home buyers need to sit down with their Loan Officer to determine how much house you can afford. Your Loan Officer will detrmine your credit rating and your debt ratios and use this information to tell you how much home you can purchase. The Loan Officer then issues you a Letter of Pre-Qualification stating this amount. This Letter of Pre-Qualification is a required document when making an offer on a home.

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4
Kevin Richey, Agent, St George, UT
Fri Oct 3, 2014
I agree with Greg, it is best to get pre-approved. This will make the entire process much easier.
0 votes
Greg James, Agent, Midvale, UT
Wed Apr 17, 2013
A pre-qualification is when we meet with a borrower prior to shopping for a home and use their income information (usually just verbal) to determine if they make enough money to qualify for a certain home price, based on their debt to income ratio.

A pre-approval is when we meet with a borrower and get a full loan application including paystubs, asset information and a credit report is pulled. We evaluate the income and asset information as well as the credit worthiness and then the application is approved through either a human underwriter or an auto-underwriting system. We can then issue a pre-approval letter so that the borrower knows they are approved to purchase a home up to a certain sales price limit.
0 votes
Greg James, Agent, Midvale, UT
Wed Apr 17, 2013
A pre-qualification is when we meet with a borrower prior to shopping for a home and use their income information (usually just verbal) to determine if they make enough money to qualify for a certain home price, based on their debt to income ratio.

A pre-approval is when we meet with a borrower and get a full loan application including paystubs, asset information and a credit report is pulled. We evaluate the income and asset information as well as the credit worthiness and then the application is approved through either a human underwriter or an auto-underwriting system. We can then issue a pre-approval letter so that the borrower knows they are approved to purchase a home up to a certain sales price limit.
0 votes
Curly Sue, , Texas
Wed Apr 17, 2013
Please stop it with all the SPAM.... please blog this stuff...
0 votes
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