As a first time home buyer in New Jersey, obtaining mortgage approval should be the first step in your search. Prequalified or pre approval may lead you to believe you are on the road to the home of your dreams, however, these terms are misleading. Having pre approval or pre qualification does not guarantee final loan approval will be granted by the lender.  Thankfully, American United Mortgage Corporation can help you obtain mortgage approval before starting your house hunt.

What Does Pre-approval/Pre-Qualification Mean?

Pre-approval and pre-qualified are terms that refer to the stage in which your actual loan documentation is reviewed. While pre-qualified sounds like you qualify for a loan, this is not  always the case. Many lenders use the term pre-qualified to convey that, based on assumptions, you fall into a category of “approvable.”  In reality, these pre-approval letters only mean that the loan officer has done a perfunctory review of the application.  To make matters more complicated, loan officers do not have the authority to approve your loan.  The underwriters are the decision makers who finance the loans and have the final say over whether the loan will be approved.  Certain criteria must be met before the loan is approved. Factors like the borrower’s employment history, financial status, credit history and others determine approval.

The Problem With Pre-Approval

Loan applications are complicated and take a considerable amount of time to go through the process.  With a pre-approval in hand, you may start progressing further along in the home purchasing stages. You may tie up good faith money as a show of seriousness about buying that home.  You may invest money on a home appraisal, title, legal fees or inspections– on a home you are not approved for! In worst cases, finding out last minute that your loan was not approved could be devastating and delay your house hunt by months.  How can this be prevented? Full loan approval is the answer.

The Solution: Full Loan Review

Instead of struggling to gain pre approval, demand full approval at the beginning of your search.  Selecting an experienced lending partner will lessen the stress of your house hunt since you’ll know exactly what you qualify for sooner.  The lending partner will have your documentation reviewed by the underwriter prior to your search.  Receiving an approval from the underwriter is a guarantee that you will be getting the funds needed to go through with the home purchase. With a full approval, you become a cash buyer since the money is guaranteed!

Most lending institutions won’t offer a full approval until the buyer has gone under contract to buy a home. At American United, you can get a Full Loan Review before you make an offer on a home. This puts the power in your hands, and makes you a more attractive buyer than any competitor. Please contact Joe at 908.322.5423 or via email:  joe@americanunited.com to learn more about how to get the maximum support behind your loan application.