Wilmington and Burgaw Area Real Estate News

When talking about mortgage applications, it is far different to be pre-qualified than be pre-approved. Knowing the meanings and ramifications of both terminologies are very important when you apply for a mortgage.

Pre-qualification is simple and pertains to the very first stage in the process of getting a mortgage. It means giving all your financial information, debt, income and assets, to the lender from whom you want to acquire a mortgage. The lender then studies all of your data and determines the qualifying amount. The Internet or telephone is an ideal vehicle for the oftentimes gratis procedure of pre-qualification.

The amount indicated during pre-qualification acts as an index of an amount you can look forward to, but it does not insure anything. Pre-approved brings much more credence because pre-qualified is a subjective appraisal based exclusively on data which the buyer provides to the lender. Pre-approval is the next phase and it is much more complicated.

There is a charge required when you fill out a legal mortgage application for pre-approval. The application supplies the lender with everything necessary to carry out a check on your credit rating and financial circumstances. It will become apparent to you now both the amount that you have been granted and the interest rate you will need to pay on the loan. Guaranteeing an exact rate may possibly be done at this time.

A commitment in writing for a specified amount is determined with pre-approval, but the loan is still conditional at this point. The advantage to this is that at this point you know what price level you need to look for when shopping for a home. Pre-approval puts the buyer one phase closer to an actual mortgage from the point of view of the seller. Potential buyers benefit from both the pre-qualified and pre-approved procedure because it empowers them to limit themselves to a price level of homes they can afford. You will avoid wasting time by considering those homes you don't have enough money for, and when you do find what you desire you will be able to move fast, because a sale will not be contingent on getting financing.

If you need help finding a mortgage lender, please give me a call. I have worked with a large number of mortgage lenders in the Wilmington, NC area and would be happy to point you in the right direction.

Tammy Barnes -Realtor - Burgaw, NC Real Estate - Wilmington, NC Area

Search for homes and land in the Wilmington, NC, metro area, including Leland, Hampstead, Burgaw, Ogden, Castle Hayne, Carolina Beach, Kure Beach, and Wrightsville Beach. You will also find information on the buying and selling real estate process, including preparing your home for sale and qualifying for home loans.