Everyone knows it is smart to get lender Pre-Approved before starting to look for a home, yet many people are actively looking at homes thinking they are Pre-Approved, when in reality, they are only Pre-Qualified.
Pre-Approved or Pre-Qualified? So what is the difference?
As a Loan Officer for over 20-years, I can tell you story after story of people who thought they were Pre-Approved, signed a purchase agreement, gave notice on their apartment, only to be told a week before closing that they were denied. The vast majority of these people, calling me to see if I can magically help them had two big items in common:
- They applied at a bank or credit union (unlicensed Loan Officer)
- They NEVER supplied the lender with all (or even any) basic supporting documents up front.
Simply put, if you didn't supply current pay stubs, bank statements, W2's, and Tax returns, YOU ARE NOT PRE-APPROVED - No matter what they tell you!
Looking to buy a home in Minnesota, Wisconsin, or South Dakota? Don't have your dream fall apart at the last minute, get properly Pre-Approved for a home loan today.
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