Mortgage

There are two terms incorrectly being used interchangeably in today's marketplace:
pre-qualified and pre-approved. They sound similar, but their impact on a transaction
is quite different.

Pre-qualification
This is an estimate of your borrowing power. This estimate is based only on the
information you provide and is not verified by a lender.

Pre-approval
This is a firm loan commitment issued by a lender, subject to a satisfactory appraisal
of a property to be purchased. When you have been pre-approved, your income,
assets, and credit have been reviewed to the satisfaction of the lender

Pre-Approval provides real benefit. Here are several reasons to consider getting pre-
approved early in your home buying process:

• Confidence: Knowing that you are pre-approved for home financing allows you to
search for properties with confidence, having eliminated financing issues
• Credibility: Providing a pre-approval letter increases the credibility of your offer in
the eyes of homeowners who often have several offers to consider
• Agility: Knowing your financing capacity allows you to respond quickly
• Focus: Getting pre-approved early in your home buying process allows you to
focus on the most important goal: finding the perfect home.