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Am I Approved or only Pre-Approved?

In the past (before 2006), borrowers could make offers on houses with nothing more than a note from their lender stating they’ve been pre-qualified.  That meant the lender spoke to them and thought they were a pretty good bet.  Later, lenders began to pre-approve borrowers.  That meant they’d gone beyond a friendly chat and actually pulled the buyer’s credit report and looked at their loan application.  But a pre-approval was still just another way to say that someone looked like a pretty good bet.

loan preapprovedFast forward to today, and many borrowers are being encouraged to be fully approved before going house-hunting.  A full approval means that the lender has already sent documentation (tax returns, pay stubs, etc.) to the underwriting institution and has confirmed that a buyer will get the loan…as long as nothing changes at the last minute and they can find a house.  The real advantage to the borrower is that being fully approved makes them almost as good as a cash buyer.

Call me for the name of a mortgage advisor who will help you get your approval letter in hand! And when you do get that letter make sure you come back to my page and do a search for your perfect home!

Scot Sidener

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