prequalification and preapproval
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““Prequalification Prequalification andand
Conditional Approval”Conditional Approval”
October 21, 2010
Patrick BrockMortgage Loan Officer
Bank of America Home Loans626-253-3944 (cell)
Patrick BrockMortgage Loan Officer
Bank of America Home Loans626-253-3944 (cell)
Mortgage Prequalification and Mortgage Prequalification and Conditional PreapprovalConditional Preapproval
Why should a buyer get prequalified/Why should a buyer get prequalified/conditionally preapproved for a mortgage conditionally preapproved for a mortgage
before they begin their search for a home? before they begin their search for a home?
Why should a buyer get prequalified/Why should a buyer get prequalified/conditionally preapproved for a mortgage conditionally preapproved for a mortgage
before they begin their search for a home? before they begin their search for a home?
Because there are 3 people who will benefit Because there are 3 people who will benefit from that preapproval:from that preapproval:
Because there are 3 people who will benefit Because there are 3 people who will benefit from that preapproval:from that preapproval:
The BuyerThe BuyerThe BuyerThe Buyer
YOU! The AgentYOU! The AgentYOU! The AgentYOU! The Agent
The SellerThe SellerThe SellerThe Seller
Benefit To…Benefit To…The BuyerThe BuyerThe BuyerThe Buyer
"Please let us know how much house we can afford." "Please let us know how much house we can afford."
There are simply too many variables to answer that question:There are simply too many variables to answer that question:credit history credit history
income income debtdebt
special mortgage programsspecial mortgage programsetc.etc.
"Please let us know how much house we can afford." "Please let us know how much house we can afford."
There are simply too many variables to answer that question:There are simply too many variables to answer that question:credit history credit history
income income debtdebt
special mortgage programsspecial mortgage programsetc.etc.
Benefit To…Benefit To…
YOU! The AgentYOU! The AgentYOU! The AgentYOU! The Agent
By knowing what the financial parameters are for the By knowing what the financial parameters are for the buyer, you can spend more time looking for houses buyer, you can spend more time looking for houses
that "fit" and less time pursuing dead ends…that "fit" and less time pursuing dead ends…
Sound Good?Sound Good?
By knowing what the financial parameters are for the By knowing what the financial parameters are for the buyer, you can spend more time looking for houses buyer, you can spend more time looking for houses
that "fit" and less time pursuing dead ends…that "fit" and less time pursuing dead ends…
Sound Good?Sound Good?
Benefit To…Benefit To…
The SellerThe SellerThe SellerThe Seller
A PREQUALIFIED offer will definitely stand out! A PREQUALIFIED offer will definitely stand out!
When it comes to a seller evaluating offers, "a bird in the hand..." When it comes to a seller evaluating offers, "a bird in the hand..." definitely applies. definitely applies.
Simply put: it is better to stick with something you already have, Simply put: it is better to stick with something you already have, rather than pursuing something you may never get. rather than pursuing something you may never get.
A PREQUALIFIED offer will definitely stand out! A PREQUALIFIED offer will definitely stand out!
When it comes to a seller evaluating offers, "a bird in the hand..." When it comes to a seller evaluating offers, "a bird in the hand..." definitely applies. definitely applies.
Simply put: it is better to stick with something you already have, Simply put: it is better to stick with something you already have, rather than pursuing something you may never get. rather than pursuing something you may never get.
Prequalification Prequalification vs. vs.
Conditional PreapprovalConditional Preapproval
Prequalification Prequalification vs. vs.
Conditional PreapprovalConditional Preapproval
WHAT’S THE DIFFERENCE?WHAT’S THE DIFFERENCE?WHAT’S THE DIFFERENCE?WHAT’S THE DIFFERENCE?
PrequalificationPrequalificationPrequalificationPrequalification
A mortgage loan A mortgage loan prequalificationprequalification is simply an is simply an estimate of how much house the buyer can afford and estimate of how much house the buyer can afford and how much money a lender would be willing to loan to how much money a lender would be willing to loan to
the buyer.the buyer.
This estimate is useful in helping the buyer figure out if buying This estimate is useful in helping the buyer figure out if buying a home is a viable option for them, and if so, what their price a home is a viable option for them, and if so, what their price
range would probably be.range would probably be.
A mortgage loan A mortgage loan prequalificationprequalification is simply an is simply an estimate of how much house the buyer can afford and estimate of how much house the buyer can afford and how much money a lender would be willing to loan to how much money a lender would be willing to loan to
the buyer.the buyer.
This estimate is useful in helping the buyer figure out if buying This estimate is useful in helping the buyer figure out if buying a home is a viable option for them, and if so, what their price a home is a viable option for them, and if so, what their price
range would probably be.range would probably be.
Conditional PreapprovalConditional PreapprovalConditional PreapprovalConditional Preapproval
Getting Getting conditionally preapproved conditionally preapproved means that the means that the buyer has a tentative commitment from a specific buyer has a tentative commitment from a specific
lender for mortgage funding.lender for mortgage funding.
With a conditional preapproval in hand, the buyer can start With a conditional preapproval in hand, the buyer can start their shopping – with mortgage funding in place.their shopping – with mortgage funding in place.
Getting Getting conditionally preapproved conditionally preapproved means that the means that the buyer has a tentative commitment from a specific buyer has a tentative commitment from a specific
lender for mortgage funding.lender for mortgage funding.
With a conditional preapproval in hand, the buyer can start With a conditional preapproval in hand, the buyer can start their shopping – with mortgage funding in place.their shopping – with mortgage funding in place.
It’s all about It’s all about the INFOthe INFO
It’s all about It’s all about the INFOthe INFO
THE APPLICATIONTHE APPLICATIONTHE APPLICATIONTHE APPLICATION
THE CONDITIONAL THE CONDITIONAL PREAPPROVAL LETTERPREAPPROVAL LETTER
THE CONDITIONAL THE CONDITIONAL PREAPPROVAL LETTERPREAPPROVAL LETTER
Thanks For The Opportunity!Thanks For The Opportunity!
Please let me know how I can help.Please let me know how I can help.