Pre-Mortgage Approval vs Pre Mortgage Qualification

Did you know that there is a substantial difference between a Pre-Mortgage Approval and a

Pre-Mortgage Qualification?   If you are in the process of buying a house it is important that you know the distinction.

A Pre Mortgage Qualification is a very casual look at your employment and salary to determine the approximate value of a home that you could possibly get a mortgage approval for.  In other words the Realtor and/or the mortgage broker are giving their clients a very approximate value of a house that you could get a mortgage for.  It does not however guarantee a mortgage at that amount.

A Pre-Mortgage Approval is a the result of a formal investigation by a mortgage broker or a bank advisor regarding your ability to take on the responsibility of repaying a mortgage.  A Pre-Mortgage Approval essentially guarantees a mortgage up to a certain limit.

In my experience as a Realtor I know how devastating it can be to have your mind set on a specific house that you think you will be approved by the mortgage lender, only to find out at the last minute that the Bank  or mortgage company will not provide the mortgage funds required.

In order to save you and your family from this major disappointment be sure to ask for a Pre-Mortgage Approval.  Be prepared to disclose your Tax Assessment for the last two years, your salary stubs, possibly a letter from your employer as well as a full list of all your credit card debt as well as any loans you might be carrying.  It is always better to be fully prepared when you begin your search for a new home.