Posted on: 11th Oct, 2005 10:37 pm
How these terms are different from each other.
Can i have an overview on these????
Kim
Can i have an overview on these????
Kim
Hi Kim
Pre-qualification, pre-approval and loan commitment are important stages of the loan application process. Pre-qualification implies that a borrower has talked to a lender regarding his income and financial liabilities. The lender does not verify any information received and based on the calculation of the debt to income ratio he states whether the borrower may get a mortgage loan.
Pre-approval includes the verification of the borrower's income and credit history. The lender reviews the borrower's credit report and states the maximum amount of loan that can be offered. He also mentions the type of loan programs the borrower can acquire and what can be the possible interest rates.
Loan commitment is the confirmation that the lender will offer the loan after he has approved the borrower as well as his property. The home appraisal must be in accordance with the lender's guidelines. The home should be appraised at a value greater than or equal to the sale price. The commitment date on the contract to home purchase is usually closer to the date of closing.
Hope this information will help you.
Regards,
Caron.
Pre-qualification, pre-approval and loan commitment are important stages of the loan application process. Pre-qualification implies that a borrower has talked to a lender regarding his income and financial liabilities. The lender does not verify any information received and based on the calculation of the debt to income ratio he states whether the borrower may get a mortgage loan.
Pre-approval includes the verification of the borrower's income and credit history. The lender reviews the borrower's credit report and states the maximum amount of loan that can be offered. He also mentions the type of loan programs the borrower can acquire and what can be the possible interest rates.
Loan commitment is the confirmation that the lender will offer the loan after he has approved the borrower as well as his property. The home appraisal must be in accordance with the lender's guidelines. The home should be appraised at a value greater than or equal to the sale price. The commitment date on the contract to home purchase is usually closer to the date of closing.
Hope this information will help you.
Regards,
Caron.
Hi!
I have some information to share with you. Prior to pre-approval, the title to the property must be free from any outstanding liens that cannot be paid at closing, any pending law-suits and other judgments. The lenders may again check your credit report before closing to make sure that no changes have been made to it.
You can easily buy a property after you get pre-qualified and pre-approved for a mortgage loan because that will make the sellers confident about your financial ability.
Thanks.
I have some information to share with you. Prior to pre-approval, the title to the property must be free from any outstanding liens that cannot be paid at closing, any pending law-suits and other judgments. The lenders may again check your credit report before closing to make sure that no changes have been made to it.
You can easily buy a property after you get pre-qualified and pre-approved for a mortgage loan because that will make the sellers confident about your financial ability.
Thanks.