Beginning your search for your next piece of Houston real estate is a very exciting time of your life. Many families begin this process shortly after graduating a college degree program, having their first child, or getting a much needed raise in income from their employer. The home buying process can be a smooth one as long as you are prepared to make informed and intelligent decisions when you finally find that perfect home. Finding the perfect home isn't easy; being prepared to make a decision with your financial pre-approval in hand will help you make the right decision.
Pre-Qualification and Pre-Approval
There are two types of loan approvals when seeking financing for your home; pre-qualified and pre-approved. Pre-qualified simply means that you submitted your personal information to a mortgage professional and your credit has been verified to allow you to take advantage of a particular loan program. The next step in the process is to submit all of your supporting documentation to your mortgage professional to verify that the income, balances on accounts, and credit history is true and accurate before submitting your loan application for final approval. Once your supporting documents have been verified by your mortgage professional, you are then promoted to the next stage of the home buying process. You are now pre-approved to buy a home. To summarize, pre-qualification is simply a credit check. Pre-approval is when all of your supporting documents have been verified.
Many real estate agents will allow you to view homes with a pre-qualification letter from a mortgage profe
