Definition of Pre-approval:
Orange County, Ca Mortgage Pre-Approval:
A letter from a bank or a lender that gives a borrower an estimate of how much they are willing to lend and approximately what their payment will be, along with a corresponding interest rate estimation. Getting pre-approved for a loan helps establish a price range and determines how much of an Orange County home the borrower can afford. To get pre-approved, the borrower must provide the lender with personal information such as his social security number, W-2 forms, credit history and payment stubs.
Lenders will verify the borrowers' credit, income, employment and other assets like savings and checking account balances. Pre-approval can be completed online and usually can be completed in one day or less. In Orange County getting pre-approved is a very important part of the home buying process. Buyer’s can act quickly and put in a competitive offer when they find the right place. Home-sellers in Orange County expect buyers to be pre-approved as there's less of a chance that the deal will fall through due to trouble obtaining financing. BanCorp REALTOR’s® will always insure that their client’s are preapproved for their mortgage before beginning to shop for homes.
Pre-approval is completely different than pre-qualification. Pre-qualification is very informal. With pre-qualification, the lender won't verify any of the information the borrowers provide, which many times can be faulty.