The Pre-Approval Process
What is the difference between a pre-qualification and a pre-approval?
  What should I expect from my Mortgage Lender?
  
  What will my lender will expect from me?
  
  
Lenders offer potential borrowers either a pre-qualification letter or a pre-approval letter.  However, most Realtors would recommend you get a pre-approval letter before you start home shopping.
 
A pre-qualification letter states the amount a lender thinks you will be able to borrow based on your income and credit score without any actual documentation.  A pre-approval checks into your credit scores and incomes to give you a definitive answer.
 
However, mortgage lending standards have tightened since the housing crisis, and all mortgage loans now require full documentation and verification of income and assets—so most sellers will only accept an offer from a buyer with a full pre-approval letter based on the verified information.
  
 
The best lenders take a cooperative approach with borrowers and explain all your loan options. When your lender checks your credit report, they should give you feedback on how to improve your credit profile.
 
They should also offer recommendations on how to handle your money between the time you apply for a loan and settlement day.
 
Your mortgage lender should provide advice about when to lock in your loan rate and discuss the pros and cons of several loan programs.
  
  
Your lender needs you to be honest about your finances and responsive to all requests for additional information. The more cooperative you are with a lender, the easier the loan process will be.
 
You should be prepared with tax returns, W2’s, bank statements, employer names and addresses, and your current landlord’s information.
 
Your lender will generate a mortgage approval based on your debt-to-income ratio and credit score, but you need to also consider your budget and your own comfort level with the monthly payment amount.
 
There’s no need to borrow the maximum amount you are approved for.  You should plan to have an emergency fund because it is vital for responsible, long-term homeownership.  You won’t know what kind of expenses may just pop up.
  
Matthew Kiss
Sr. Mortgage Advisor
Getting a mortgage is a critical part of the real estate transaction- and it’s more challenging than ever it today’s changing market.  That’s why it’s important to work with a trusted mortgage provider like me who’s dedicated to helping you find the right loan and get to closing on time.  At Coldwell Banker Home Loans, we have programs, expertise and service to meet your needs and help you focus on what matters most to you: getting into the home you want.
 
For more information, visit Matt's website here.
  
Cell: (908-) 451-1454
matthew.kiss@mortgagefamily.com