LIMCA - Long Island Comparative Market Analysis

The current mortgage market is extremely competitive. Lenders must have an informal "measuring stick" in order to offer their clients a product. In order to establish your bargaining power with home sellers, buyers need to get Pre-Qualified for a loan. Thus a Pre-qualification is the informal measuring stick. Pre-approval is the lender's commitment that they can offer the mortgage, subject to a specific property. Pre-approval is subject to a lender check. *

Pre Qualification- Pre-Qualifying for a loan entails sitting down with a lender and discussing what you can afford given your down payment (if necessary), debts, and future mortgage considerations. This meeting in no way allows the lender to check up on your credit, job history, etc. without you signing the authority to do so.

Approval-an Approval is granted by your lender only upon receipt and verification of your credentials, your income, debt load, credit report, and more. Some Lenders find the information from your previous tax returns sufficient for some loan products. Other requests range from proof of employment, to the need for a co-signer. The sheer number of options involved in borrowing the money for your new home do not allow for all facets to be covered here. Talk to your Agent for more detailed options for you.

* checking income, assets, credit responsibilities, etc.