Mortgage PrequalificationPre-qualification of the mortgage
Obtaining Advance Approval for a Mortgage
Specifically, this paper will address the pre-approval phase. Lots of folks think that prequalification and pre-approval are the same, that's anything but the reality. While both phases involve similar documentation, pre-approval is much more precious than pre-qualification. Once they have successfully analysed your information, the mortgage provider will give you a general indication of the mortgage amount you are eligible for.
Prequalification is the preliminary phase of pre-approval and can be done by telephone or even over the web, it is not the same as pre-approval. Prior authorisation is a much more complex phase, involving much more specifity. You must give your pre-approval to both the vendor and your realtor before you can make an enquiry for a sale.
Looking for houses and looking at those you like ends up being a very lengthy procedure, you can sometimes look at 10 or more houses before you find one you like. Just think you spend weeks at a time and even a week looking for your home, find it, eventually, apply for a mortgage, but get only an estimate of half the cost of the flat.
It can be easy to do this if you don't have prior authorization as a policy. Getting your permission in advance gives you a clear picture of how much you can buy for a home. Getting pre-approved can take a while and can be very tedious because many individuals decide to go through the procedure after finding a home they like rather than before.
Unfortunately, this is not a sufficiently good directive for a mortgage request. Just as with not going to the doctor "in case of illness", some folks do not request pre-approval for anxiety of being refused. That ends up doing more damage than good, though, as it just extends the length of your home purchase proces.