Mortgage Myth #3: Pre-Qualification and Pre-Approval Are the Same

Britney Balderas | Posted on July 18, 2018 |

An integral part of the homebuying process is applying for and becoming approved for a mortgage loan. The majority of homeowners in the country purchase their homes with the assistance of a mortgage loan for financial peace of mind, so it’s important to not only know the process of applying for a mortgage loan but also how the stages of loan application can potentially change.

The Mortgage Loan Process

The mortgage loan process is relatively straightforward no matter which lender you utilize – they will evaluate your current financial health based on information you provide and will determine whether you are able to take out a loan with that institution, as well as provide a ballpark figure of what amount you’re pre-approved for. Be sure to know exactly what the mortgage loan will and will not pay for so that you can be adequately prepared for finances you will need to be responsible for. If you’re just getting started, checking out a mortgage loan calculator can help you see whether you are in a good financial place to take out a mortgage loan.

Find a Reputable Mortgage Loan Lender That You Trust

While a lot of people prefer to stay with their primary bank to finance their mortgage loan, some choose to look elsewhere. And as long as you feel comfortable and safe in the hands of that institution and their reps, either choice is typically fine. In addition to getting a fair and affordable repayment deal, an important part is that your lender should be able to explain your mortgage plan thoroughly to you and answer any questions you might have about the process, the repayment terms, etc. You should take a look at the different mortgage loan packages they offer to see which ones work best with your financial plans and capabilities. To see how Eastex Credit Union can be your trusted partner during your mortgage loan process, contact us here.

Apply for the Mortgage Loan

Typically, applying for a loan is an easy process – for example, you can apply for a mortgage loan immediately on Eastex Credit Union’s website for a seamless application experience. For other lenders you may have to come into their office to apply, so be sure to ask your lender how the application process works.

If you’re applying for a mortgage online, be sure that whatever webpage you’re using to fill out your form is secure – you can see this indicated by a lock symbol in the URL bar of your browser.
The information you’ll need to have handy in order to successfully fill out a mortgage application is:
- Social Security Number
- Contact and employment information
- Best estimates of income, assets, and liabilities

After Applying for a Mortgage Loan

Your mortgage loan provider should help guide you through the loan process, and afterward will contact you to complete anything else additional that is needed to complete your loan application package. Based on that, they will help you select the best program and interest rates.

So, Is Pre-Approval on a Loan Final?

Receiving the good news that you have been pre-approved for a loan is certainly reason to be excited, but being pre-approved isn’t a binding agreement. For example, if your credit drastically changes after being pre-approved, the lending company may rescind your status. Avoid the following after receiving a pre-approval status:

Incurring late or missing payments
Drastic changes in income/employment status
Making large purchases that affect your credit all at the same time

All lending companies have the right to check your credit at any point during the mortgage process up until the mortgage itself closes, so it’s wise to avoid any additional large purchases or credit checks until your mortgage loan is finalized!