Getting pre-qualified for a mortgage: 
Getting pre-qualified for a mortgage is what most people are doing when they think they are actually getting pre-approved.  Getting pre-qualified involves verbally providing your income and debt, which in turn tells you how much of a loan a bank would give you.  This is a good start in buying a property, but the actual mortgage approval process has not started yet.  It is in your best interest to go one more step beyond this and to get pre-approved.

Getting pre-approved for a mortgage:
Getting pre-approved for a mortgage is something that will make you a much stronger buyer when you are looking to buy a piece of property.  Getting pre-approved involves submitting all financial information to a loan originator.  This may include filling out an loan application form and submitting such documents as, paycheck stubs, bank statements, investment statements, two years of past tax forms and also having a credit report run.  This can be done at no cost or minimal cost to you. Once you have given the mortgage person your information and documents, they will be able to move forward to help you. They will now be able to get you pre-approved for a loan.  Mortgage Checklist

The advantages of being pre-approved for a mortgage:
Once you are pre-approved  you are a much stronger buyer in the market place.  The approval process takes anywhere from a couple of days to a couple of weeks depending on how quickly you get your information and documents to the mortgage person.  You will be sent a pre-approval letter that  you can give to your agent so they can submit it when making an offer on a piece of property.  Also, you may authorize your mortgage officer to fax a copy directly to your agent to expedite this process. Being pre-approved becomes even more important if there is more than one offer on the property.  The pre-approved buyer increases their chances of having their offer accepted which is an advantage to you. 

After getting pre-approved:
Once you are pre-approved by a mortgage company, you still have the option of shopping around to other mortgage companies, if you desire.  You are not locked into staying with the company that pre-approved you. 

One caution to beware of when getting pre-approved, is that sometimes a loan originator may tell you that you are “pre-approved” or maybe even give you what they call a “pre-approval letter” when really you are only pre-qualified.  Many people use these terms interchangeably, when in fact they have two completely different definitions.   We will gladly help verify if you are in fact pre-approved.