FAQs

image1

What is a Pre-Qualification?

A pre-qualification is a preliminary loan approval based on your loan application only.  While this can be helpful in determining your final loan eligibility, it does not guarantee loan approval or a purchase price limit.

What is a Pre-Approval

A pre-approval is a much more concrete and substantial preliminary approval.  Whereas the pre-qualification is based only on your loan application, the pre-approval is based on review of your loan documentation, your loan application, and also a preliminary underwrite of your loan application.  Before shopping for a home, you should have a pre-approval in hand to know what your purchase price limit is, and to have an idea of the monthly payments in your price range.

Is APR the same as your interest rate?

NO. While the two are related, your APR (annual percentage rate) is not the same as the rate on your home loan.  The APR is actually a calculation of the cost to secure credit, reflected as an interest rate. 

What is Earnest Money?

Earnest Money is essentially a good-faith payment the borrower provides to the seller to reflect their interest in the seller's home.  These funds are counted as part of your down payment, and are typically held by the title company handling the purchase of the home until your closing day. 

How long does the pre-qualification/pre-approval process take?

Upon receipt of your loan application, I will be in touch within 24 hours to discuss your pre-qualification.  We typically can issue a pre-approval within 24-48 hours of receipt of your loan documentation. That means if you apply on a Monday and provide your documents on Wednesday, you could be out home shopping--with a pre-approval letter--by Friday of that same week. 

How long is the pre-approval good for?

Agency guidelines allow for your credit report to be valid for 120 days from the date it is pulled, so your pre-approval letter is also typically good for around 120 days, as the letter is based on your credit (among other items).  However, should you perhaps start a new job or get a raise or decide to put more money down, all you need to do is reach out to me and we will update your pre-approval to reflect any changes in your life or loan preferences.   

image2
image3

Bank of England PrivacyPolicy (pdf)

Download

Credit Counseling Disclosure (pdf)

Download

Preventing Identity Theft Disclosure (pdf)

Download

United States Patriot Act Disclosure (pdf)

Download