What is Mortgage Pre-Approval?

In today’s lending environment, mortgage pre-approval is more important than ever. Current lending standards are tougher, and investors require more documentation and proof of income than in the years before our current economic climate.

Don’t worry. DNJ Gateway Mortgage has the experience and knowledge of the mortgage pre-approval process that will help make closing your loan less stressful than it might be with another lender!

No one wants to get excited for their dream home, make an offer, and then find out just before closing that they can’t get approved for the loan. A mortgage pre-approval or pre-qualification helps avoid this situation and reduces the worry and stress that accompany the home loan process.

The Mortgage Pre-Approval Process in Four Simple Steps

  1. Fill out an online application on our DNJ Gateway Mortgage website
  2. Once your application is submitted, a Mortgage Loan Officer will contact with you to discuss all the details of your transaction and check your credit.
  3. Compile all the items on the Mortgage Pre-Approval Checklist
  4. Once you and your Mortgage Loan Officer have worked out all the details, your scenario will be passed along to our underwriters, who will evaluate your needs and situation before making a decision on your loan.

Mortgage Pre-Approval vs. Pre-Qualification

A pre-qualification is done by a mortgage loan officer (MLO), who will determine either how much you can afford or whether or not you will qualify for your desired loan program.

This is based on your credit, your debt-to-income and housing ratios, and other details of your transaction. The MLO will then write up a pre-qualification letter for you to include in your offer to purchase your new home.

A pre-approval is far more in-depth. A credit analyst will underwrite your application file as if it were any other loan. The analyst will then give a soft “approval” on whether or not the loan would be approved by an investor. A mortgage pre-approval tells a seller that you are ready, willing and able to purchase their home, and gives the seller (and you!) confidence that the transaction will close.

About the New NC Mortgage Pre-Approval Law

The new 2011 NC real estate contract requires a completely different approach to the home buying process and makes mortgage pre-approval even more important than before. The new contract, currently referred to as the Offer to Purchase and Contract presents quite a few major changes; for more information, contact one of our NC offices.

Get Your Mortgage Pre Approval Today!

Home buyers from Maryland, Virginia, North Carolina, South Carolina, Georgia and Florida can learn more about our mortgage pre-approval process by calling us toll free at 877-9-NO-COST (877-966-2678)!

DNJ Gateway Mortgage proudly serves clients in Raleigh, Durham, Chapel Hill, Cary, Apex, Greenville, Fayetteville, Fort Bragg, Greensboro, Winston Salem, High Point, Wilmington, and Charlotte, NC, and surrounding areas. We also offer mortgages in South Carolina, Virginia, Maryland, Georgia and Florida.