Pre-Qualification vs. Pre-Approval. Strengthen your mortgage bargaining power in CT by knowing the difference between these two homebuyer tools.

Pre-Qualification vs. Pre-Approval. Strengthen your mortgage bargaining power in CT by knowing the difference between these two homebuyer tools.

"What size house can I buy;" How big of a mortgage can we afford; and "How do I make sure my offer is accepted?" These are three of the most common questions asked by First-Time Home Buyers, Move-Up Buyers and Downsizers.

Getting Pre-Qualified for a mortgage is a good start. This will give you a general idea on how your financial situation affects your buying power It can also help you determine which Loan Officer going to select to assist you with financing the largest investment you may ever make. Usually, there are no commitments attached to getting pre-qualified by a loan officer... you are investing a little of your time and the risk of pulling a credit report.

The Best Place to start is to get Pre-Approved for a mortgage loan upfront in the process by a Direct Lender. Not only does Pre-Approval give you the peace of mind knowing your price range has been approved by the lender, it strengthens your position at the negotiating table especially if you are asking for seller concessions.

There's a Big Difference between being Pre-Qualified for a loan and being Pre-Approved for a mortgage. Some brokers offer Pre-Qualifications, only direct lenders can extend a conditional Pre-Approval. Here's the difference:

Pre-Qualification:

• Provides only a "ballpark" estimate of your buying power
• Is based solely on the verbal summary of information you provide on your income, assets and down payment availability
• Requires receipt of a satisfactory appraisal of the property
• Requires receipt of a formal mortgage application and receipt all supporting documents, financial information and review of program requirements prior to issue of final approval.

Being Prequalified essentially means that a verbal interview has been conducted without providing any of the necessary supporting and based on your say-so, it appears you can afford a specified mortgage amount sufficient to purchase a home selling in a particular price range.

Pre-Approval:

• Means that you have supplied all of the documentation documents (pay stubs, W2s, bank statements) that is required to support your loan scenario.
• Is based on a formal verification of your income, assets and credit history
• Your application has been reviewed and signed-off on by an direct-endorsed underwriter for compliance with the appropriate mortgage program
• Provides proof to real estate agents and sellers that you are a serious buyer and by accepting an offer from this buyer, there should not be any financing issues with the buyer.
• Requires only a satisfactory appraisal, a title review and no change in your financial condition for final approval
• Is offered FREE by Envoy Mortgage www.envoymortgagect.com as a service to you before you begin shopping for your new home.

Pre-Approval signifies that the loan application has been through a formal underwriting procedure. A strong preapproval letter can be the difference between having your offer accepted on your next home when competing with other buyers.

Understanding my clients' needs with a focus on honest answers to their concerns has earned me the reputation as a mortgage advisor you can trust.