Smart Home Financing posted a helpful article that compares the pre-approval to the pre-qualification. Many first time homebuyers find themselves confused when discussing their needs mortgage needs with a lender or broker. The mortgage pre-approval is a written letter that includes a loan decision from the underwriting department after a borrower completes the residential loan application. A pre-approval letter is a great negotiating tool for home buyers because it lends them credibility and helps the seller make a decision on their perspective offer.
Many first time home buyers prefer FHA mortgage loan options because these loans only require a 3.5% down-payment. For homebuyers with a military background we recommend VA mortgage programs because they require no down-payment. VA home financing is available up to 100% even for first time homebuyers. Read the original article online at the Smart Home Financing Blog > Pre-Qualification Versus Pre Approval Letter
