The More Your Client Knows, The Better Off They’ll (and You’ll) Be
Today’s home buyers are more familiar with the home buying process than ever before. But there’s still things about getting approved for a mortgage that can be confusing to some. For instance, there remains a lot of confusion around pre-qualifying for a mortgage and being pre-approved for one. Many prospects believe these two things are one-in-the-same, but they’re not.
In this guide, you’ll learn how to properly explain the difference between mortgage pre-qualification and pre-approval, so your future prospects can take all the steps necessary to getting the loans they need to buy the homes of their dreams.
The Truth About Mortgage Pre-Qualification
Getting pre-qualified for a home loan is a much quicker process than getting pre-approved, for one, because it serves only as an estimate for what the borrower can probably afford. All the borrower needs to pre-qualify for a mortgage is to provide a lender with their name, phone number, annual income, and estimated assets and debts. Applying for a pre-qualification can be done in person or over the phone.
Getting pre-qualified is an important first step in one’s home buying process because it gives the applicant an idea of just how much mortgage they might be able to get approved for. It helps the applicant narrow down their home search based on this number.
Unfortunately, many applicants believe that being pre-qualified for a mortgage is the same as being approved for one. This is not the case. In fact, being pre-qualified doesn’t even mean that the borrower will be approved for the loan amount provided in their pre-qualification, or that they’ll even be approved for a home loan at all.
The Truth About Mortgage Pre-Approval
Unlike a pre-qualification, a mortgage pre-approval is a thorough investigation of the borrower’s income, debts, assets, credit history, employment history, and other important pieces of information. This is a much more comprehensive and time-consuming process that requires the borrower to submit a lot of official documents for review, including but not limited to:
- Bank statements
- Paystubs
- W-2s
- Driver’s license
- Social security card
After undergoing the pre-approval process, the borrower will know the exact amount of the mortgage they can get. As long as nothing changes in the borrower’s life or credit history from the time of the pre-approval to the time of the closing, they are all but guaranteed to be approved for their mortgage. A borrower should be advised to get pre-approved upon starting the home buying search because the pre-approval will typically expire after 60 to 90 days. In fact, many prospects bypass the pre-qualification stage altogether and instead choose to get pre-approved because a pre-approval is a substantially stronger negotiation tool.
Get Qualified Mortgage Leads From RGR Marketing
If you’re looking for a reliable resource for high-quality mortgage leads, contact RGR Marketing today. We specialize in providing mortgage companies with verified leads based on their unique target audience. We have been a leading provider of mortgage leads for more than 20 years, so let us put our experience to work for you. Contact us today to find out how our exclusive, verified leads can help your mortgage business grow.
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