Congratulations on making the decision to become a homeowner. Buying a home has a lot of benefits such as tax deductions, more privacy, creative freedom, and it serves as a long-term investment. But before you can begin acquiring these benefits of homeownership, you need to figure out where to begin in obtaining a Brooklyn mortgage.
This starts with deciding whether or not you should get pre-qualified or pre-approved before you begin your home loan application. So, to help provide some insight, Yael Ishakis, the best mortgage lender in Brooklyn, has listed the key differences between a pre-qualification and pre-approval.
Pre-Qualification
Pre-qualification is a quick and easy process that can even be done online and is referred to as step one in the application process. Here your local lender will collect the bare minimum information regarding your loan. They will briefly review your finances and try to determine which loan options you will qualify for the best. Your credit score may be checked, depending on the lender, but this is not a requirement to get pre-qualified.
Pre-Approval
The pre-approval process is more in-depth and can give you a lot more credibility with seller’s than a pre-qualification can. Getting pre-approved means your lender will thoroughly review your financial documentation. These documents include but are not limited to, your bank statements, pay stubs, debts, and assets. They will also run a credit check in order to receive an accurate credit score on your finances. Your credit score can have a large impact on which loans you can qualify for.
Getting pre-approved for a Brooklyn mortgage can offer you many advantages such as the ability to work with a realtor. Most real estate agents will refuse to work with a buyer who has not been pre-approved because they do not want to waste their time working with someone who is not serious about purchasing a home. When you have been pre-approved, this shows seller’s and real estate agents that you are serious in becoming a homeowner and are financially capable to do so.
Contact Us
For more information on the difference between pre-qualification and pre-approval, or to get started on your mortgage application today, please contact Yael Ishakis at 718-732-0309.
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