# 1 Mortgage Pre-Qualification
The lender will typically run credit, calculate a debt-to-income ratio and determine that you meet the https://paydayloanscalifornia.net/ general guidelines of the mortgage program for which you are applying based on information you have provided regarding income/employment/assets, etc during this phase. In this period there is certainly typically perhaps not a considerable post on paperwork. This will be performed during the early stages of preparing to purchase a property. The amount of overview of documentation and whether or otherwise not credit is drawn at that time frequently can vary greatly by loan provider. That is why, if is actually better that you have a pre-approval instead of a pre-qualification if you should be intent on making an offer on a house.
# 2 Mortgage Pre-Approval
A pre-approval is an even more in-depth overview of the borrower’s skills and certainly will add overview of earnings and asset documents. The file is likewise submitted electronically through the Fannie Mae, Freddie Mac or FHA automated underwriting system. This method is employed by all loan providers to evaluate the grade of the loan file.