Mortgage Pre-Qualify / Approval

georgia-home-loanYou have probably heard the terms Pre-Qualification and Pre-Approval and may have wondered what the difference is. What do you really need to view Georiga homes, make an offer, or purchase a home?

Prequalification

When you get prequalified, we will typically run your credit, look at ratios and check assets to make sure there is enough to meet reserve requirements.   Most professional real estate agents won’t even show you homes without a Pre-Qualification letter and in today’s Atlanta GA market you must have one before you submit an offer on any home.  A GA Pre-Qualification letter says that you have spoken with a lender and they do not see any immediate concerns with your ability to borrow.  This is not as detailed as a Pre-Approval but will allow you to start the process of viewing homes and submitting an offer on one.

Pre-Approval

With a GA Pre-Approval, we do everything above and also run your file through an automated underwriting system.  We also ask you to send over supporting documents to place in your file.  The supporting documents we typically ask for are:

  • 2 Paystubs
  • 2 Years W-2’s
  • 2 Months of Asset Statements
  • Driver’s License
  • Signed Authorization Form

Everyone’s situation is different, so we may need additional documents.  Once we have had time to review all of your documents, you are pre-approved subject to you finding a property, appraisal, clear title and an underwriter’s final approval.  In today’s fast-moving market with foreclosures being snatched up quickly it is advantageous to go ahead and get Pre-Approved if you are serious about purchasing a home now and want to stack the odds in your favor.