It should mean – you ARE approved for a mortgage loan – in many cases, it means little more than the paper its printed on.
With many so called ” Florida mortgage professionals”, “Pre-Qualification” or “Pre-approval” can mean a lot of different things and a many of them are not so good for you the borrower. Did you know that many people that issue so called “approvals” don’t even have the ability to lend money? Yes, its true, most so called “mortgage professionals” don’t even have the ability to lend money!
At FHA Pros Online it only means one thing: You are 100% credit approved for a specific loan amount at a maximum monthly house payment. As a Direct Lender, it is our money we lend. We approve the loan, close the loan, then sell the loan. No games, no empty promises, just 100% of the truth, 100% of the time!
Let’s take a look at some of the ways you can be pre-approved with other so called “lenders”.
Start with what is often called “Pre-Qualification, WITHOUT credit review.”
The buyers have inquired about financing to purchase a home. Their credit has not been reviewed – Income, assets, or employment documentation have not been reviewed or verified. You have only had a conversation about how much money you make, and what your monthly bills are – the loan officer hasn’t really looked at a single thing regarding the buyer’s ability to close on a loan.
Many so called lenders call this a pre-qualification- some a pre-approval, but all they really have done is made a commitment to try and get you the loan.
It still doesn’t mean you are approved by someone that has an actual ability to lend you money!
Now let’s look at what can be called “Pre-Qualification, WITH credit review:”
Buyers have inquired about financing to purchase a home. Their credit report has been reviewed by the loan officer but their income, employment, and asset documentation has not been reviewed by anyone that has the ability to lend you money!
When this so called lender tells this buyer they are pre-approved, the stage is set for major problems. You have heard all the horror stories. You may not even qualify for a loan at all. If you do, it could be with a completely different rate, down payment, and monthly payment. You will likely close late, over budget, with lots of last minute surprises and stress!
Then there is the “Pre-Approval WITHOUT Underwriting Review” Most so called lenders call it a pre-approval.
Buyers have inquired about financing to purchase a home. The loan officer has reviewed the credit report, income, and asset and employment documentation. The loan officer has even run the application through their Automated Underwriting System.
This is the type of pre- approval that can cause the most headaches. Until an underwriter actually reviews and approves the application, and all the documentation, your loan is not really approved. You are making important financial decisions without your loan being underwritten and approved by anyone that has the ability to lend you money!
Now let’s look at how we at VA Pros Online do it – the right way!
The only way to know you have been approved for a loan is by getting an approval by someone that has the ability to actually lend you money! At Florida VA Pros Online, we are Direct Lenders! You’re approval is being done by someone who will actually be the one that lends you the money when you close! Colonial First, for example, has had years of experience providing VA loans in FL, you can check them out at the Colonial First Mortgage site.
The buyers have APPLIED with us for a mortgage. Their credit has checked, all the documentation of income, assets and employment have been reviewed and verified. Our in-house underwriter has reviewed the loan application and most importantly, a conditional commitment has been issued.
Final Commitment requires acceptable property purchase contract, clear title, property appraisal for value, and the home must be insurable condition.
Then and only then can you be comfortable that your loan is really approved – it’s that simple!
Our clients shop and make offers with confidence knowing their loan will close – On Time, Under Budget, with No Surprises! That our Guarantee!
If you are going to make an offer on a home, and write an earnest money check that you could lose if you don’t meet all the contract deadlines, don’t you want to be SURE that you have done everything you needed to do as a qualified borrower to insure your deal will close?
Why go it alone, when you can go with a Pro? FHA Pros Online are here to help you get your home today, and afford your home for all of your tomorrows!