San Gabriel Valley Homes By Rubi and Russ
Are you pre-qualified or pre-approved for a loan in California?
Before you begin to shop for a new home in California, you should set up a time to meet with a lender/s so they can figure out how much you can afford when you go to look at homes here in California. This will put you in a better position as a buyer. That’s when it is important to understand the distinction between being pre-qualified for a home loan and pre-approved for a home loan. The difference between the two terms will be crucial when you decide to make an offer on a house.
To get pre-qualified for a loan, the Lender will collect information about your debt, income, and assets. They will look at your credit profile and assess goals for a down payment and get an idea of different loan programs that would work for you. They will issue you a pre-qualification letter indicating the amount you are pre-qualified to borrow when you are ready to buy your home.
It is important to understand that a pre-qualification letter is just an estimate of what you are eligible to borrow, not a commitment to lend. Getting pre-approved for a loan gives you competitive advantage when the time comes to bid on a home because you have been approved for a home loan for a specified amount.
To get pre-approved, you will complete a mortgage application and provide Lenders with various information verifying your employment, assets and financial status such as W-2 forms, bank records and credit card statements. They will review your mortgage options and review your application offer you options that best meets your needs. Once the application process is complete you will receive a pre-approval letter indicating the amount your lender is willing to lend you for your home in California.
A pre-approval letter is not binding on the lender; it is subject to an appraisal of the home you wish to purchase and certain other conditions. If your financial situation changes (e.g. you lose your job), interest rates rise or a specified expiration date passes, your lender must review your situation and recalculate your mortgage amount accordingly.
Allow us here at www.SGVHomesbyRubi.comto help choose Lenders and evaluate your best lending options.
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