Pre-qualification is a first step process in the collection of informal information to allow your Lendevity loan advisor calculate your creditworthiness.
When speaking with or sitting down with your Lendevity advisor they will pull together information such as your credit score, your current debt and income. They may ask you to list your assets to help determine how much you can borrow. This information is only self-reported information, but it does provide a fairly accurate estimate of how much you can afford to put in your dream home.
Pre-Qualifying for your home loan will can save you hours and hours of shopping for homes out of budget or below budget. This first step to purchasing your home will give you confidence in your financial requirements.
Many people use the term pre-qualification and preapproval meaning the same thing, however, in the mortgage world these terms mean two different approval types.
Pre-Qualification: Self provided information to estimate the amount of house you can afford.
Pre-Approval: Actual documentation submitted to Lendevity, and Letter of Preapproval generated to provide to your real estate agent showing your ability to purchase a home.
Now that you understand the difference and know that pre-qualification only takes a day, maybe two we can look at the different loan options available through Lendevity.