Confusion often arises over the difference between pre-qualifying and pre-approving.

A pre-qualification is normally issued by a loan officer, who, after interviewing you, estimates the dollar value of a loan you can be approved for. However, loan officers do not make the final approval, so a pre-qualification is not a commitment to lend. After the loan officer determines that you pre-qualify, he/she then issues you a pre-qualification letter. This pre-qualification letter can be used when you are making an offer on a property. However, sellers are often advised to only accept offers from buyers who are pre-approved for their home loan.

Pre-approval is a step above pre-qualification. Pre-approval involves verifying your credit, down payment, employment history, etc. Your loan application is submitted to an underwriter and a decision is made regarding your loan application. If your loan is pre-approved, you are then issued a pre-approval certificate. Getting your loan pre-approved allows you to close very quickly when you do find a house. A pre-approval can help you negotiate a better price with the seller, since being pre-approved is very close to having cash in the bank to pay for the house!

Here are some of the advantages in being a pre-approved buyer:

1. Closing the transaction usually takes a shorter period of time.

2. Sellers are usually easier to work with because an offer from a pre-approved buyer carries more weight. In effect, it is almost like a cash offer. When you are approved, you will be given a letter to verify your approval by Towne Mortgage Company.

3. Having that pre-approval letter in-hand can make the home buying process less stressful.

4. You know what you can afford.

LOAN APPLICATION

NOTE:  Be assured that the information you provide below will NOT be shared with anyone for the purpose of advertising or email spamming (putting you on a list).  You will be contacted by email or telephone promptly.

TIP: Use the 'tab' key to move to the next box.

	Step 1: Contact Information
	Borrower's full name:
	Co-borrower's full name (if applicable):
	Home telephone number (include area code):
	Work telephone number:
	Best time to be reached:
	Email address:
	Step 2: Residence Information
	Current home address:
	City:
	State:	<--select--> Alabama Alaska Arizona Arkansas California Connecticut Colorado Delaware Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Minnesota Mississippi Michigan Missouri Montana Nebraska New York Nevada New Hampshire New Jersey New Mexico North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington Washington D.C. West Virginia Wisconsin Wyoming other
	Zip Code:
	Residence status:	owner renter
	Are you currently occupying the residence you wish to finance?:	Yes No
	How much do you owe on your mortgage? (owners only):
	How much is your monthly mortgage or rent payment?:
	Years at current address:
	State of property to be financed:	<--leave alone if same as home state--> Alabama Alaska Arizona Arkansas California Connecticut Colorado Delaware Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maryland Minnesota Massachusetts Mississippi Montana Michigan Missouri Nebraska New York Nevada North Dakota New Hampshire New Jersey New Mexico North Carolina Ohio Oklahoma Oregon Pennsylvania Rhode Island South Dakota South Carolina Texas Tennessee Utah Vermont Virginia West Virginia Washington Washington D.C. Wisconsin Wyoming other
	Step 3: Loan Information
	Loan type:	<--select type--> Purchase a Home Refinance existing balance Refinance - combine 1st & 2nd Refinance with cash out Debt consolidation loan Second mortgage Home improvement loan Home equity loan Equity line of credit Equity cash out for any purpose No equity loan FHA Cal-Vet VA Other
	Loan amount you need:
	If you are buying a home, how much money do you have for a down payment?:
	Appraisal value of home:
	Step 4: Employment Information
	Are you self-employed? If 'yes', give company name:	Yes No
	Current place of employment:
	Approximate annual income:
	Years in current line of work:
	Years at current job:
	Co-borrower's place of employment:
	Co-borrower's approximate annual income:
	Co-borrower's years in current line of work:
	Co-borrower's  years at current job:
	Step 5: Credit Information
	Describe your credit rating over the past 2 years?	<--choose credit rating--> 1. Perfect 2. Good 3. Some late bill payments 4. Some late mortgage payments 5. Have 1 or more collection accounts against you 6. Had a bankruptcy or foreclosure 7. Just plain 'bad credit' I don't know Pick a rating from our scale of 1 to 7. Being totally honest is the best way to help you.
	You give Towne Mortgage Company permission to run a credit check AFTER you talk with a loan officer:	Yes No
	Social security number:	For security reasons a loan officer will call and get social security number on phone.
	Co-borrower's social security number:	For security reasons a loan officer will call and get social security number on phone.
	How did you find Towne Mortgage Company? (for our marketing department)	<--select one--> Search Engine GoTo.com Yellow Pages Another Web Site Banner Ad Voicemail Message Friend Other
	Comments or questions:

 

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