Many first time home buyers might be unaware of so many mortgage terms involved – do not worry as it would be clarifying some of your questions here.This article will discuss about the pre-qualification and pre-approval on a home loan.Read more below :
Pre-qualifying and pre-approved for a home loan – what is that?
=>In the pre-qualification process by the lender,your financial condition will be analyzed by the lender and he will tell you the amount of money that can be lend to you for buying a new home.So the use of getting pre-qualified is that you would know the amount of cash that can be obtained through the home loan and thus you or the real estate agent will then look for houses that are in that price range – hope that’s clear to you.
=>In the case of pre-approval for the home mortgage loans,it means that the lender is going to pull the credit report and analyze other things which would indicate whether you are really capable of managing the monthly mortgage payments or not,
=>So in the case of pre-approval,you are almost assure that a mortgage loan is going to be given to you.Most of the borrowers who are given a pre-approval will be given the home loan and the they are sure to get their dream home.
1 comments:
A preapproval is certainly better than a prequalification as it allows you to choose and decide your housing options more realistically. It saves you time and puts you in a better position when looking for the right home as you already know the loan amount you're pre-approved for, instead of just taking a guess and looking at properties that are beyond your means.
Regards,
Chris from homeloans-sa.co.za
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