Curt Sandfort

A pre-qualification is just a quick estimate based on information that the customer provides. Typically, no verification is done, and with some lenders, they haven’t even pulled your credit report. This might be okay if you know you have 800 FICO scores, 30% (or more) down, and you have an extremely stable, predictable income. But even in situations like this, I’ve seen clients get pre-approved for less than they expected, so the better route is pre-approval.

A pre-approval means that the lender has collected and reviewed your income and assets, pulled your credit, analyzed your debt-to-income ratio, and completed the automated underwriting. We know how much you make, how much you spend, and how much you can afford. This is the gold standard that real estate agents expect to see.

This depends on more than just the sales price. You are actually qualifying for a maximum monthly mortgage payment, not just a purchase price. Lenders look at gross monthly income, and we look at how much your monthly obligations are going to be, including the new house payment. Homes with the same price tag can have very different monthly payments once you factor in property taxes, homeowners insurance, and HOA dues.

It depends highly on the loan program, and actually, we do loans for people with no credit history too! Some programs are more flexible than others, and your score is only one part of the picture. Your actual payment history and credit usage play a big part. If your score isn’t perfect, it doesn’t mean your loan will get denied. Sometimes a small improvement in credit usage can have a big impact on your overall score and your ability to get approved.

Not as much as you think! Some loan programs have zero-down-payment options, and others even have down payment assistance. We’ll help guide you through the process so you end up with the mortgage that fits your situation best.

YES! Getting pre-approved first helps you dial in your price range, understand your payment, and shop with confidence. Many agents won’t even want to show you a house until they know you are pre-approved or that you have the cash to make it happen.