A pre-qualification is a pre-approval, right? No! Why do you need an approval rather than a prequalification? It could end up costing you thousands of dollars if you aren't truly qualified. I have helped save many buyers from making huge mistakes when purchasing their home. A pre-qualification is not a true approval, it's the initial step in the home loan process where the buyer discusses their initial financial situation with the loan officer, but nothing is verified. The pre-approval on the other hand, is where the buyer has actually provided the lender with all the necessary documentation. At that point, the lender can actually tell the buyer what they're pre-approved for, what loan product is best for them, and give the buyer a better idea of what their interest rate will be. It's best for you to go through the entire approval process. The lender then would have verified your employment, seen your taxes, looked at your bank statements, and everything will be truly verified in order to let you know what your maximum purchase price will be. And how much down payment you may need, if any, and what your monthly mortgage payment will be.
It's pretty important to do this full process, it helps ensure that you won't lose your earnest money deposit or any money that you might have spent on inspections or appraisals. And it will definitely help you with any multiple-offer situations, beating out your competition. Contact me, Lisa Peabody at RE/MAX here in Lake of the Ozarks, MO and I will guide you through the home-buying process with the safest and the most secure strategies.