Before you start filling out your mortgage application, it’s important to know the difference between a pre-approval and a full application. Here is a quick look at each, to help you determine which applies to your current situation:
For most home shoppers, the first step in the home buying process, even before you begin looking at homes in person, is to get pre-approved for mortgage financing. To let buyers know that you are a serious buyer – obtaining an HVCU pre-approval letter is the key. In most cases, your realtor will ask if you are already pre-approved when you meet with them. A pre-approval will not have one key piece of information – the street address of your future home.
Note: A street address is not requested on a pre-approval application for a few reasons:
- You may be looking at several houses and have yet to settle on your dream home.
- Our pre-approval allows you to shop around for 90 days without the normal time constraints of a full application.
- A full application is not needed until you find a house that you want to purchase, and that house is in contract, meaning the seller has agreed to your offer and you have also accepted the conditions
Long story short, on a pre-approval application, don’t worry about address, even if you have it.
Full Mortgage Applications
After you’ve found the home you want to buy, your offer is accepted by the home seller, and you are in contract, it is then time to update your application by contacting your Mortgage Loan Officer
. The Mortgage Loan Officer will need a copy of the contract to review and update your application, including the street address. Once the Mortgage Loan Officer makes those updates, your full application is in process, and if all goes as planned, you will be in your new house before you know it!
– The main difference between a pre-approval application and a full application is the street address of the home you are in contract to buy. Similar applications, just less information upfront for the pre-approval application. Click below to start a full application today.