• Novelda L. Sommers, Independent Real Estate Writer

Have Your Lender Preliminary Approval In Hand Before Home Shopping

Or is it a pre-qualification letter you need? Here’s the difference

When you’re ready to get serious about buying a home, it’s best to have a pre-approval letter from a lender, so you can make an offer before someone else does.

Or is that a pre-qualification letter you’re supposed to get? Wait a minute, what’s the difference?

Both have their place in home buying, but only the pre-approval letter means a lender has committed to offering you a mortgage loan.

Here are the distinctions, according to the experts at Prosperity Home Mortgage, LLC (PHM), a Long & Foster company and one of the nation’s top mortgage lenders:

Lender pre-qualification: A mortgage consultant interviews the client about their income, debt and assets. It’s not a deep-dive into credit or earnings history. The loan professional looks at whether the client can qualify for a home loan and calculates an estimated maximum loan amount.

Lender preliminary approval: After getting pre-qualified, the prospective home buyer fills out an application for a mortgage. This is where all that documentation comes in, showing proof of income, assets and debts, tax records and a history of honoring credit obligations. If everything checks out, you get a letter saying you’re cleared to borrow up to a certain amount.

PHM helps buyers through this process in its Buyer Advantage program, where the pre-approval is submitted to the underwriter who generates a commitment letter for those who qualify. A Fastrack option can expedite the process for certain loan products.

“We offer both, because sometimes a Realtor or customer needs a quick pre-qualification letter, and then we follow up with the Buyer Advantage pre-approval after that,” said Ron Wivagg, PHM national sales support manager. “The commitment from a lender can strengthen the buyer’s bargaining position with sellers.”

If you’re thinking about starting the home buying process, give our team a call to start the process today, and try out PHM’s mortgage affordability calculator.

Marnie Schaar & Associates Long & Foster Real Estate are licensed Virginia Real Estate Marnie@LNF.com · Cell: 703.509.3107 | Margo@LNF.com · Cell: 571.839.6009

2100 Reston Pkwy Suite 102 · Reston, VA 20190 
Original Content Posted on RisMedia Blog the Housecall, click here to view original post.

#MarnieSchaar #MarnieSchaarAssociates #MargoSotet #Marnie #Margo #LongFosterVirginia #LongFoster #LongFosterReston #RestonRealtor #NeighborhoodAgent #NorthernVirginiaMagazine #TopRealtorinReston #TopProducer #TopAgent #HouseHunter


Recent Posts

See All

Licensed Realtors in Virginia



Direct: 703.509.3107

Office: 703.437.3800

Long & Foster Real Estate Reston Sales

2100 Reston Parkway, Suite 102, Reston, VA  20191

  • White Instagram Icon
  • w-facebook
  • Twitter Clean

© 2018 Marnie Schaar & Associates, Inc.

Proudly created with Wix.com