PRE-QUEALIFICATION LETTER IS FREE!!
What is mortgage prequalification?
Prequalification is how lenders determine if you fit the basic financial criteria for a home loan. To get prequalified, you tell a lender some basic information about your credit, debt, income, and assets, and they tell you how much you may be able to borrow. “Tell” is the key word here. The information used for prequalification is self-reported, which means the lender doesn’t verify it or look at your credit report.
How long does it take to get prequalified for a mortgage?
Because it’s an informal, nonbinding evaluation, you can get pre-qualified in a day or two, sometimes less. Depending on the lender, pre-qualification can happen in person, over the phone or online.
What’s the difference between prequalification and preapproval?
Unlike pre-qualification, preapproval requires proof of your debt, income, assets, credit score and history. To get preapproved, you’ll supply documentation such as pay stubs, tax records and proof of assets. Once the lender verifies your financial information, which may take a few days, it should supply a preapproval letter you can show a real estate agent or seller to prove you’re ready and able to purchase a home. Remember, prequalification doesn’t guarantee preapproval. You can still be turned down if your financial documents don’t support the numbers you reported.