Did you receive any mortgage pre approval mail?

At times you will receive invitation for getting loans from the loan providers. The loan providers will not simply send you an invitation they would have probed into your credit history and selected you based on their own judgement.This process is called mortgage pre approval. Learn more on the topic as well as how to go about it.

This article covers

• What is a mortgage pre approval?
• What is the procedure for that?
• What are the advantages?

Nowadays, most credit institutions tell you that if you can pay each month a determined amount of money, then you already have a mortgage pre approval. On the other hand, to pre qualify for mortgage is none other than a marketing stunt to attract a possible costumer, making him to really think about it. You may even receive it via mail at your front door or, along hundreds of spam letters. Who knows, it may end in a business transaction.

In the case you have received a pre qualification via e-mail without asking for it first, then be very careful. Serious lenders don't use spam for marketing, they use non intrusive methods which show an image of stability and respect for their costumers. You can't be too careful with your financial privacy, so beware of possible email scams.

A mortgage pre qualification means that a financial institution has evaluated some very basic aspects of your credit history and found that you may be interested in their services. Beware, it doesn't mean that you will actually receive the loan. Look at it as an invitation to a work interview. You may be invited, you may go, but it doesn't mean that you will actually get the job.

On the other hand, a mortgage pre approval means that the lender has made its homework with your financial statement. He knows your credit history, income and debts. It's the previous level before a more serious commitment: the mortgage loan

What Is The Procedure To follow when Pre-Qualifying?

Pre qualify mortgages are the first step. If you are interested in the invitation, you should go to the credit institution and meet one of their representatives. They will ask for a series of documents for continuing the evaluation like you employment history, your credit score or FICO, your income/debt ratio, and other papers.

If everything is ok, then the lender will give you a pre approval. With this document you can go to the real state market and start the search for your new home.

What Is The Difference Between Pre-Approval and Pre-Qualifying?

The main difference between them is the amount of time the lender has invested in evaluating you financial situation. A pre approval is considered as a more serious relationship between the lender and the borrower. You could use a love relationship as comparison. A girlfriend or boyfriend is a prequalification, a fiancé is a pre approval and marriage is the actual mortgage loan.

Continue to: Who Can Benefit By Pre-Qualifying Mortgages