There are two types of loan approvals:

PRE-QUALIFICATION LETTER - (recommended for those who are just thinking of buying, or are sure they won't be buying for 6 mos. or longer)

• You can usually obtain this by telephone with a lender.
• A loan officer will ask about your income, assets, debt and projected down payment.
• Within just a few moments, you will have a good idea as to how much a lender would likely loan you and the types of loans available to you.
• The lender does not require a credit check or verification of claimed income and assets, therefore, it cannot be used when presenting an offer.
• The primary purpose for a pre-qualification letter is help define what priced homes you should be looking at, and how much you may expect to come up with for a down payment.
• Most lenders will provide this service for no charge.

PRE-APPROVAL LETTER - (No offers are submitted without this. Serious buyers need this!)

• You must provide verifiable documentation regarding your income, assets and debt.

• You must give the lender permission to obtain your credit report.
• The lender will then provide to you, a written good faith estimate (GFE), which includes the loan amount and terms in which they would offer you a loan.
• A pre-approval letter gives you credibility with listing agents and sellers; a serious buyer who has already lined up your financing.
• You will know what priced homes to spend time looking at, and will be ready to make offers.
• Obtaining a pre-approval letter from a lender does not commit you to get a loan through them, nor does it commit the lender to write you a loan.
• You may be charged a fee at the time of appointment.

For more specific information and conditions to obtaining a loan, contact your lender. If you don't have a lender, may I suggest you visit the Affiliated Partners page of my website and contact one of the listed lenders of choice.