WHAT IS THE DIFFERENCE BETWEEN PREQUALIFIED AND PRE-APPROVED?
A pre-approval is a number your lender or mortgage advisor gives you before you go shopping. Based on a brief overview of your financial situation, this number gives you an idea as to how much you should be able to qualify for when you do secure a mortgage. A pre-approval, however, does not guarantee that financing will go smoothly. When the time comes, the lenders have to dig deep into income documents, sources of down payment, credit, appraisal and other things pertaining to getting the mortgage. Pre qualification means that the lender or the mortgage advisor have tooth combed all documents upfront and have discussed the type of property you are buying, the investment strategy you will use and how to mitigate any risks so there are no surprises at the time of financing the deal. Financing should enable the achievement of your goals and the best way to do so is to plan financing ahead of time so you are not left scrambling for financing when you really need it.
Streetwise Mortgages, www.streetwisemortgages.com