Now There’s Something Better Than Getting Pre-approved!


When applying for a mortgage, you’ll see terms like preapproval and prequalification. Understanding these terms is essential as it’ll help you decide on the homes that meet your budget. They can also help a seller determine whether you are a serious buyer or not. Prequalification and preapproval are used in mortgage approval. They are the steps taken by a lender to determine if they should risk investing in a borrower. However, note that since lenders are different, these terms may vary depending on one’s types of loan and credit card. But, in all of them, lenders have to assess whether a client can afford to pay the mortgage.  

Pre-Qualified Meaning 

It’s when a lender has accessed your financial history and has determined whether you’re eligible for a credit card or loan. You initiate this process when you apply to get pre-qualified for a loan.  Sometimes the lender will require you to give basic information like your annual income, expenses of housing per month, savings. But at other times, they may review one’s credit using a soft inquiry.  Often, the lender will assess the self-reported information a customer gives rather than pulling their credit report and going through it by themselves. This thus makes the process a ballpark estimate and compared to pre-approval it can be less reliable.  Note that pre-qualification doesn’t mean that you’ll get your loan approved. However, applying it through a soft inquiry is better because it’ll prevent you from the hard inquiry, which affects your credit score.  

Pre-Approved Meaning 

Exactly what does a mortgage pre-approval look like? Well, a pre-approved sets a client at a better place of getting their loan application approved, although it varies with different processes. For instance, if you receive pre-approval offers on your email or phone, it could be that you’ve appeared on a list of a credit reporting agency as among those who are qualified for a loan. If you’re interested in the offer, the lender should give you the same terms as those on the email or phone. However, there may be hidden terms that you may only know after you apply and consent to a hard inquiry. However, pre-approval does not always mean that your application will be approved. It all depends on factors like your income, credit history, etc.  

Key Approval Meaning

At Spire, we offer a totally unique program that is different from any other lender! This program is far superior to being either pre-qualified or pre-approved. It takes it one step further and shows the buyer you are a solid candidate for buying a home. It’s a simple process much like the other preapprovals, but with some great features. Here are the basics of the program:
  1. The underwriter/decision-maker reviews the loan and signs off on it.
  2. The lender adds $15,000 assurance on your offer, putting your offer similar to ‘cash’ vibes because of the loan review being completed.
  3. Shorted contract since much of the work is already done
  4. No wait time if you’re ready to put in offers, the process can be completed simultaneously.  
Simply put, Spire’s Key Approval Program is definitely the clear winner here. If you decide to apply for a loan, you should be ready to share more information about your finances. They’ll help you determine the possibility of your application getting approved. If you’re unsure where to start, there is also a pre approval home loan calculator you can use to determine if you qualify. Talk to one of our professionals to get started today. 

A Lending Hand for Financing Home Mortgages

Spire Financial (A Division of AmeriFirst Financial Inc.) brings lending expertise to you. All of our loan officers offer personalized communication for every client, guiding them through the process. We can show you ways to maximize your finances and unlock future opportunities. Spire Financial keeps you in control of refinancing, debt consolidation, and home equity. Together, we can achieve your financial goals.

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Disclaimer


Spire Financial, a division of AmeriFirst Financial, Inc., 1550 E. McKellips Road, Suite 117, Mesa, AZ 85203 (NMLS # 145368). 303-595-0110. © 2022. All Rights Reserved. This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates, and programs are subject to change without prior notice. All products are subject to credit and property approval. Not all products are available in all states or for all loan amounts. Other restrictions and limitations apply. AmeriFirst Financial, Inc. is an independent mortgage lender and is not affiliated with the Department of Housing and Urban Development or the Federal Housing Administration. Not intended for legal or financial advice. Visit https://amerifirstloan.com/pages/state-licensing for all state licenses information. Visit NMLS Consumer Access at https://www.nmlsconsumeraccess.org/

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