While the above terms may sound similar, they are not the same and often mistakenly used. Generally, you would provide a lender your income amount and debts and they will provide and estimate of a loan amount, with verifying the information you provided. In a pre-approval you provide your social security number, and lender will verify debt to income ratio, loan to value ratio, FICO score, credit and employment history, as well. In essence, a mortgage lender's priority is whether or not you are able to repay the loan and an important factor to determine the best loan product and interest rate for you.
If your finances, credit score and debt to credit ratio need to improve, this is a good time to begin working on them. Strength in these areas will also make you stand out, when making an offer on your property of choice. For further assistance on getting a mortgage pre-approval and finding a home, call me,(305) 804-9394.
Miriam Hernandez, Broker-Owner ELC Real Estate LLC www.elchomes.com elcrealty@gmail.com. (Source: RealtyTimes) Ashley Sutphin Sunday, February 26, 2023.
