What’s the difference between getting pre-approved and getting pre-qualified? I brought in Mike Lassiter of Amerifirst Home Mortgage to help us answer that question.
For pre-qualifications, customers send their application to a lender. This just reviews numerical data: where you’ve worked for the last two years, what your assets are, where you live, etc. The lender puts this into an online underwriting system and issues an automated underwriting approval.
“Sellers see a pre-approval as a guarantee.”
It’s better to go a step further; it’s a very competitive market out there, and sellers like to see pre-approvals. For this process, the lender takes your numbers and matches them up with your financials. This includes bank statements, W-2s, and paystubs. This goes to their in-house underwriting team, and they issue a goal certification. This is like cash for a buyer, and it helps them win deals. Sellers see it as a guarantee, and it shows that the buyer can close in as little as two weeks.
A lot of buyers go online for the pre-approval process, but these lenders only handle pre-qualification. They’re not taking the extra steps needed for pre-approval. In addition, online lenders are paid a salary and often lack experience. A local lender doesn’t get paid until the loan goes through, meaning their focus is on providing great service. Amerifirst has licensed lenders, and everything is taken care of in-house.
I’d like to thank Mike for giving us some great insight. Feel free to give him a call at 919-618-4806 or email MLassiter@Amerifirst.com. If you have any other questions, reach out to me. I look forward to hearing from you soon.
