Navigating the world of mortgages can be daunting at first, especially considering the many stages and terms you will likely come across even in your research stage. In this blog post, we will take a closer look at the concept of a mortgage pre-qualification so that you can be a bit more prepared to start the process of financing your new home successfully.
What Is a Mortgage Pre-Qualification?
A mortgage pre-qualification is essentially an estimate of how much money you can realistically borrow from a lender. It’s an official statement that takes into account your finances based on the unverified information you provide to a lender and establishes the amount you may qualify for based on that information.
Pre-qualification is often one of the first steps potential homeowners go through when looking to finance a home. Luckily, pre-qualification can be easily done, even remotely, as the lender will only need certain information from you to see how much money you may be able to borrow. This information can sometimes include:
What Is the Difference Between Pre-Approval and Pre-Qualification?
Pre-approval is a much more common term potential homeowners will likely come across. The reason is because pre-approval is a more formal process than pre-qualification.
With a pre-qualification, consumers can receive a written statement that they may qualify to receive a loan from a particular lender, coupled with the type of program and the amount of money they may be able to receive if the information they provided to the lender is accurate. Receiving a pre-qualification is not a guarantee you will be approved.
Pre-approval, however, takes matters a few steps forward. To receive it, a consumer must provide verification documents, which may include paystubs, bank statements, and other relevant documents necessary to determine if the consumer may qualify for a loan or not. Receiving pre-approval from the lender makes it far more likely that the consumer will receive the loan, as the process itself is much more in-depth. Still, a pre-approval is not a commitment to lend and a consumer will need to submit a complete application in order to determine if they will be approved.
What are the Advantages of Mortgage Pre-Qualification?
Banks and other financial institutions often have their own requirements for who can qualify for a mortgage. If you also factor in the different types of programs the lender might have, getting pre-qualified may help you decide if you should move forward with a particular lender when trying to finance your loan.
It’s important to keep your options open and research several lenders to ensure you work with a lender that is right for you. Asking for pre-qualification may help you determine which of your chosen lenders has the right program that suits your circumstances.
CSMC Mortgage May be Able to Help
If you’re looking to buy a new home, CSMC Mortgage is happy to help you navigate the prequalification or pre-approval stage, as well as the loan application process. We offer several loan types and programs aimed to help potential homeowners reach their dreams. Our team will help advise you throughout the process to find a type of loan that suits your needs.
If you’re interested to learn more, we encourage you to reach out to CSMC Mortgage directly and discover your home financing opportunities.
“Faye helped me purchase my first home last year. She was very professional and worked very quickly to help me procure financing. She made herself available around my schedule and took the time to explain my options for financing to help me get the lowest rate possible. Would highly recommend her to anyone looking for someone that is professional, highly knowledgeable, polite, and responsive.”
- James Z.
“This review is about Mark and Darci Richardson from CSMC Mortage in Simi Valley. This team is the BEST! For the past 12 years our home was "underwater" due to the "crash" in 2007, and unable to do anything with the mortgage except pay it. These two kept on top of things and finally the house qualified to REFI. We just completed everything and it closed last week... and they saved us over $900 a month!! That's a huge savings for a couple of senior citizens! We are SO happy now and finally can breathe. Thanks to Mark and Darci and CSMC Mortgage for following through, jumping through all the hoops necessary and helping us out! I can't recommend them more... they are the BEST!!!”
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“David Honda and his team rocked!! They had great technology that took so much of the pain of home buying away. They were attentive to our specific needs and were on top of our loan process! David was always available, even when he was in Hawaii, and super responsive! Thanks David, Melissa and the team for an easy and great home buying experience.”
- Raymond F.
“I had the best experience with CSMC Mortgage. Buying a home is very stressful with all of the paperwork that has to be filled out. Faye was amazing! I have given several people her contact info, who are scared to take the step to homeownership. She took ALL of the stress away for me. I honestly, didn’t have to do much. She accommodated my crazy work schedule and help me get things done in a timely manner. She made me feel so comfortable and at ease. There were no surprises when it was time to sign and pay. I highly recommend her to anyone in need of her services and guidance. I can’t thank her enough.”
- Lisa M.
“With this being my first home purchase, my loan officer was very good at explaining everything to me and helping me with all my needs. Thank you for having such great people in the right place!”
- Cathleen H.
“These folks are conscience and easy to work with. The “calm” as the “storm” of home loans rolls through! I would not use anyone else. They make sure ALL your questions are answered, be that what competitors may have offered, or ads you may have heard or seen. What a pleasure to do business with. Thank you team CSMC.”
- Michael G.
“CSMC Mortgage took great care of us and our home buying needs. Tony was more than we could have ever asked for, he went above and beyond for us and we couldn’t have been more grateful for all his hard work. CSMC Mortgage has a great and friendly staff, I would highly recommend them to anyone looking into buying a home.”
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“Baret Grigorian was amazing!! From start to finish Baret was there to help in every way. I never felt like I had to call him to follow up on my loan transaction and he always kept me informed. He was able to get me great financing rates, a lower payment AND money back! Thank you Baret!! I look forward to working with you again in the future!!”
- Kenny D.