Purchasing a home is an exciting time in anyone’s life, but there are numerous steps the buyer must take before the seller can hand over the keys. Before potential homebuyers settle on an agent, they should visit their Credit Union. Consulting with a lender provides buyers the opportunity to discuss their loan options and budgeting choices. At the Credit Union, you can learn about mortgage pre-qualification and discover how it differs from pre-approval.
Receiving pre-qualification on a loan is one of the first, most important steps in the mortgage process. Homebuyers supply their credit union with information regarding their financial history, such as debt, yearly income, and valuable assets. Once the details are evaluated, a lender can provide a general idea of the buyer’s prospective mortgage amount. The pre-qualified buyer can then discuss their home buying goals with the lender.
The next step in the home buying process is a receiving pre-approval on a home loan. The process is more in-depth, and typically involves an extensive check of the buyer’s financial history. Whereas a mortgage pre-qualification provides an estimate on how much the buyer can afford, the pre-approval suggests the lender has already approved a specific loan amount.
The Mortgage Process
Generally, buyers with pre-approvals are seen more favorably than buyers with only pre-qualification. It’s recommended to complete a pre-approval when dealing with a potential home seller. Not only does pre-approval provide the buyer with a mortgage amount and potential interest rate, but it also shows the seller that you are serious about obtaining a mortgage. The biggest advantage for any buyer is to know in advance how much he or she can spend on a home. Searching for a new home can turn into a lengthy endeavor, so it helps to weed out properties that are beyond your budget as soon as possible.
Once a buyer is pre-approved for a home loan, they can continue with the mortgage process. Are you planning on purchasing your dream home? Contact Your Credit Union first!
Visit the Baltimore County Employees Federal Credit Union
Experience the Credit Union mortgage advantage. We offer a variety of loan types featuring competitive rates and no hidden fees! It’s the people who are the real heart of the Credit Union. Personalized service from friendly staff, loyal members who utilize the many cost-saving services, and dedicated volunteers who work to make the Credit Union a success! If you have more questions, stop by one of our three branches.