Financing

Pre-Approval vs. Pre-Qualification

Now that you have your list of features you want in your new home, you are ready to start looking! Well, not just yet. You are going to need to know in what price range to look. There are two ways to go about this. You can get prequalified or preapproved for a mortgage. Either way you will need to contact a mortgage company.

There are some key differences between prequalification and preapproval for a loan that you need to be aware of. Loan prequalification is a simple process. It takes into account very basic information regarding your financial status and gives you an amount for which you may qualify. This can be done strictly on a verbal level or electronically over the Internet. The prequalified amount is based solely on the information you provide. In most markets, prequalified buyers usually hold little clout compared to preapproved buyers due to the fact that the information given during the prequalification process is not thoroughly investigated and therefore may be unreliable. Where a preapproved buyer is actually approved for a loan of a certain amount, a prequalified buyer is only told that they might be approved for a certain amount.

Preapproval is a much more involved process. The lender will take all pertinent information regarding your finances and perform an extensive check on your current financial status. This will ultimately give you the exact amount that you will be eligible for (depending on what type of loan you decide to go with). Being preapproved lets the seller know that you have gone through an extensive financial background check and there should be no unexpected obstacles to buying the home. You can see how being preapproved would be more attractive to a seller than just being prequalified.

Once you have determined what you can afford, the next step is to choose a mortgage plan. There are many different mortgages out there, so take some time and explore all of the possible plans for which you qualify. You could save yourself thousands of dollars in the long run!

Todd Fierman of First Fidelity Mortgage

Our Preferred Lender
Todd’s philosophy is simple. Treat and consult each client as if they were a member if his own family. Listen to each clients’ needs and desires.  Communication is the key to knowledge. Advise each client so they are always getting the best loan program for their current situation.  Todd believes in giving each client several loan options not only to meet the today’s needs but also meet tomorrows as well.  Todd has been working and providing clients with loan products for over seven years and is committed to a lifetime relationship with each every one of them.

Todd Fieman

Direct: (404) 943-1533 x223

Cell#: (404) 579-9696

Email: TJFGators@aol.com

First Fidelity Official Website.