Faculty and Staff Home Buyer's Guide
The Pre-Qualification and Pre-Approval Process
Pre-Qualification
Before you begin Shopping for a house or condominium, it’s wise to seek mortgage pre-qualification. The pre-qualification process entails providing unverified information about your personal financial situation, which allows the lender to estimate the largest affordable loan to you. This will give you an idea of the price range in which you should stay when you look for a home. Be prepared to provide information on your income, debts and assets. Once you are pre-qualified, you can begin looking at what size and features you can realistically afford in your home.
Pre-Approval
Pre-approval involves a lender committing to finance your home purchase up to a certain amount. To determine the pre-approval amount, the lender examines your complete financial profile including your income, bank accounts, stocks, bonds, and credit history. Another important check that lenders often perform during pre-approval is obtaining your personal credit report. You may want to request a copy of your credit report so you know what your lender is using to evaluate your credit worthiness. This will give you a chance to review and correct any mistakes you feel the report may contain. To request a copy of your credit report, you can call any one of the three main credit agencies: Equifax at (800) 685-1111, TransUnion at (800) 916-8800 or Experian at (888) 397-3742.