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Lighthouse Mortgage
Bancorp, Inc.

"Your lender for life"

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Pre-Qualification and Pre-Approval

We Offer Free Pre-Qualification and Pre-Approvals, As Well As Free Mortgage Consultations

What is Pre-Qualification/ Pre-Approval?

Pre-qualification/approval means obtaining a lender's commitment to give you a loan before you start looking for a home. A mortgage originator, such as Lighthouse Mortgage, will review your financial information: income, employment history, credit history, down payment, and asset information. The mortgage originator determines if you qualify for a loan, and if so, the dollar amount and terms.

How Does a Pre-Qualification/Approval Help Me?

A pre-qualification/approval will uncover any problems with your finances and/or credit before you commit a great deal of your time or other people’s time (i.e. Realtor, seller, attorney) to the search process. If there is erroneous or derogatory information on your credit report, it can take several months to correct. You want to know this as early as possible so it can be fixed before you apply for a loan. Your goal should be to apply for a loan when you have your best credit score possible, this will help you to qualify for the best rates and terms available.

The pre-qualification/approval process gives you the time and space to think clearly and without pressure, which helps ensure that you’re making good choices about the biggest purchase of your life. During the process you evaluate mortgage variables, including amortization schedules, adjustable rates and down payment options. And you see how those options affect monthly payments and the maximum loan amount you qualify for. Once you put an offer on a house everything shifts into high gear. You are emotionally and financially committed. Sometimes this stress and the deadlines may rush you into pressured and unsound decisions.

A pre-qualification/approval tells you the mortgage payment before you start looking. If you are uncomfortable with the amount of this monthly mortgage payment then you can change the direction of your search and look for lower priced homes.

A pre-qualification/approval helps others take you more seriously. Some Realtors will not work with someone unless they are pre-approved. In a Sellers Market a seller may want you to be pre-approved before they will accept an offer from you. Pre-approval is especially helpful when there are multiple offers on the same property.

What is the difference Between Pre-Qualification and Pre-Approval?

A pre-qualification is made without verifying information. It is like a doctor giving a diagnosis over the phone. A pre-approval is more robust because the information is verified. Lenders view things differently than ordinary people. For example, if any part of your income varies (e.g. commissions, bonuses, etc.) that portion of your income must be averaged over two years. This detail may not be caught in a pre-qualification interview and it can affect the loan amount that you qualify for.

Cautions about Pre-Qualifications/Approvals

Pre-qualification/approval is based on current interest rates. It is important to know that a significant shift in the interest rate can affect a pre-qualification/approval.

The financial information used for your pre-qualification/approval is verified prior to the loan closing. Therefore, it is critical that employment, income, credit and assets stay essentially the same, and that liabilities do not increase. Any changes may negatively affect your loan application.

How do I go about getting Pre-Qualified or Approved?

Call Julie Davidson at 847-498-6767 ext. 302. We can start your pre-qualification or pre-approval over the phone.