Pre-approval There is a difference between pre-approval and pre-qualification, although the terms are often used interchangeably. Pre-qualification is advice you receive from a loan professional based on unverified information.  In other words, a conversation during which you discuss your income, assets and debts and it gets translated into what might be a good idea for you.  This is a nice introduction to the process, but it isn’t considered pre-approval. Pre-approval is not pre-qualification, loan approval or loan commitment.  It simply means that you have applied for a loan under an assumed set of circumstances and have received approval for that situation.  It can be re-worked as your home search evolves.  It can be re-done as your life changes.  The process involves the actual completion of a mortgage loan application.  The form can be sent back and forth via email, regular mail, by fax or over the phone.  In addition, you will need to provide written proof of income and your financial assets.  At this time we will pull your credit report.  We take all of this information and underwrite the file to find the proper loan program and price range for you.  This is your first step on the way to the purchase of your new home and it’s very important. Being pre-approved let’s the seller know that you have already selected your loan professional and have made application.  You are a serious buyer writing a bona fide offer.  It puts you in a very good position.  You are now able to negotiate your offer with confidence. You don’t want to find yourself standing in your dream home only to discover later that you cannot obtain financing for it.  During pre-approval we let you know where your limits are and help you decide how your new home fits into your financial plan.  We are available to you during your home search so we can keep your file updated or re-work it if you need to make changes. We encourage you to ask questions because it is important to us that you fully understand your choices. Once you have found your home and have a sales contract in place, we simply complete the application with the specifics of the property and obtain your signatures.  You have already done the hard part by being pre-approved! Contact us for a comprehensive pre-approval.  We look forward to discussing your options with you! "Sarajane and Angela were great to work with.  I was a first time buyer and they took as much time as I needed to answer all my questions and made sure I understood.  They were very enjoyable to work with."