Securing pre-qualification, pre-approval, and mortgage commitment letters can simplify the mortgage application process. These steps can also help home buyers avoid disaster. They don't need all three, however.
Mortgage Pre-Qualification and Buying a House
Future home buyers can get pre-qualified for a home mortgage long before they ever start house shopping. Used mostly by buyers to gather information and ask questions, this process is quite informal. Applicants have a consultation with a mortgage lender. He or she will ask a range of questions about debt, finances, the type of home the applicant would like to have, and the requirements for various loans.
Using this information, the mortgage lender will then provide the applicant with a range of information. First, the lender will discuss any details in the applicant's financial profile that may cause issues with the approval process.
He'll also discuss mortgage types, their requirements, and what borrowers need to be approved. This gives...