Most mortgage lenders can pre-qualify you over the phone, but can you really trust them?  Did you know there is a difference between pre-qualification and pre-approval?  You need a legitimate lender to pre-approve you.  

Lenders can pre-qualify you based on general questions about your financial and credit history, but pre-qualification is only an estimate how much mortgage you qualify for.  If you are competing with other buyers, a pre-qualification letter doesn’t count for much, because it is not verified.

Pre-approval means that you have actually applied for a mortgage.  You filled out the application, you received your credit report, and you verified your information.  When you are pre-approved, you know what the maximum loan amount will be.  As a buyer, you have credibility.  Because of that, the seller knows that you will qualify for a loan to buy their property.

During pre-approval, use only a legitimate lender, and they are:

  • banks
  • mortgage bankers
  • credit unions
  • savings and loan associations
  • mortgage brokers
  • online lenders

Some lenders to avoid are those who:

  • lose a form or misplace a file
  • gather information from you in an unorganized manner
  • are not informed about interest rates, points or costs
  • cannot provide you with the right information
Use only mortgage lenders you can trust.