Jilyn Crawford American Family Funding
American Family Funding
A Division of American Pacific Mortgage
A Direct Lender
28368 Constellation Road, Suite 398, Santa Clarita, CA 91355
Jilyn Crawford, Senior Loan Officer
NMLS # 1850/272879
Cell: (760) 220-4543
Fax: (661) 481-2393
E: Jilyn@affloans.com | www.affloans.com
Pre-Qual’d versus Pre-Approved
Buyers and Sellers are often confused by the difference between mortgage loan pre-qualification and a home loan pre-approval. Even some loan officers and real estate agents will use the terms incorrectly, so here’s what you really need to know about each one.
A mortgage loan pre-qualification is simply an estimate of how much house you can afford and how much money a lender would be willing to loan you. The best time to get a pre-qualification is right at the beginning of your home buying process, before you even start looking at houses. This involves providing information on your income, assets, debts, and a potential down payment amount. Your lender will then provide you with a general figure in writing of how much he thinks you could afford to pay for a monthly mortgage with all associated costs. There is no commitment on the buyer’s end to work with that lender in the future. This estimate is just helpful in helping you figure out if buying a home is a viable option, and if so, what your price range would probably be.
Getting pre-approved means that you have a tentative commitment from a specific lender for mortgage funding. In this case, you provide a home loan lender with actual documentation of your income, assets, and debts. This process typically requires an application fee as well, since the bank will run a credit check and work to verify all your employment and financial information. Once you are approved, your lender will give you a letter of commitment, stating how much money the bank is willing to loan you for a home purchase. With a pre-approval in hand your offer will be taken more seriously.
Shopping Around or Second Opinions
It is important to understand, however, that even a pre-approval is not a guarantee that you will be approved for a mortgage loan. The funding will only be given when the property appraisal, title search, and other verification occurs related to a specific property. Neither are you stuck with the lender once you’ve been pre-approved; you can still obtain a mortgage from a different lender. If you do stick with the same lender that pre-approved you though, the loan process will be much shorter once you find the right house.