The difference between pre-approval and pre-qualified. It matters!

The importance of a credit approval letter cannot be stressed enough according to Tricia Bryan with Central Source Mortgage. In today’s market, if you want to be taken serious, you need an amazing approval letter. Let’s discuss the 2 types of approvals…Pre-qualified vs pre-approved, Pre-qualification can be done over the phone or on the internet, and there is usually no cost involved, paperwork  provided or any type of detailed look at your credit history. As a buyer you can do this but chances are no seller will take your offer seriously. What you want to do is get fully pre-approved. You’ll complete a loan application and supply the lender with the necessary documentation to check on your financial background and current credit rating. With a pre-approval, you will receive a conditional commitment in writing for an exact loan amount, this is what you need to have! . Good credit is the key. People often ask me, I think I have bad credit but I’m not sure, do you think I can buy a house?  Let me help in answering that question, sometimes it’s just not possible to get a mortgage, for example: If you pull your credit on line and it gives your computer a virus that may be a sign you need to clean up your credit. Contrary to what you may have heard trying to use white out to remove bad credit on your report really doesn’t work either.  In my opinion lenders have almost got to the point you need to prove you don’t need a loan in order to get a loan. This statement is much closer to the truth than you might believe.
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