Pre-Qualification Vs Pre-Approval: What does it mean?

Cardboard house sitting on money

Know the difference.

Ever wonder what it means to be pre-qualified or pre-approved for a mortgage? Curious about what it takes to make that happen? It doesn't have to be as hard as you may think!

Pre-Qualification

What does it mean? This is basically the beginning of a financial road map that you are helping to draw with your lender. You provide some basic information to them and then they give you an estimate of the amount of money that you will have to work with. This will also speed up the approval process once you find a home you want to buy. 

In order to be pre-qualified for a loan you need to take a few simple steps:

  1. Select and meet with a lender!  Mortgage Center is a great option if you are still in search of someone to guide you through the home buying process. 
  2. Disclose information about your job, income and assets.
  3. Your credit will be checked. This will allow you to take a pre-qualification letter with you when shopping for a home. 

Pre-Approval

This step is a little more involved because at this point most people have found the house that they are looking to purchase. This involves submitting a lot of paperwork and waiting for more specific information on the house.

Here are a few steps to take in order to get pre-approved:
  1. Submit an official mortgage application; be sure to find out from your lender if there is a fee.
  2. Supply official documentation to your lender. This includes a full credit history, assets, proof of income, and proof of employment (additional information may be needed).
  3. After submitting this information you may be approved, depending on the appraisal of the home that you are looking to purchase. 
Mortgage Center is Christian Financial's exclusive mortgage partner, and they can help you get pre-qualified and pre-approved. Apply online or call 800-353-4449 to speak with a representative today.
 
Posted: July 3, 2017 by
Filed In: buying, home, mortgage


Post Archive

 
 
Contact Us:

35100 Van Dyke Ave
Sterling Heights, MI 48312

586.772.6330

CFCU Routing & Transit Number: 272484289
 
Download our Mobile App





 
Facebook Social NetworkInstagramTwitter
Christian Financial Credit Union was founded in 1950 and has grown to serve anyone who lives, works,
worships or goes to school in Macomb, Wayne, Oakland and St. Clair Counties. 
 
© 2006-2022 Christian Financial Credit Union  All Rights Reserved.
Federally insured by the NCUA
Equal Housing Opportunity Lender