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In our industry, people often confuse pre-qualification with pre-approval. There is however, a very significant difference between the two. In a purchase transaction, it is important to understand and know the difference so you can avoid needless complications and/or setbacks during the buying process. Please continue reading below…
Simply put, a pre-qualification is an estimate of what you can afford for a mortgage, whereas a pre-approval means that the borrower has gone through an official application process with a lender, and that lender has made a tentative commitment to fund the borrowers purchase.
There is no cost for a pre-qualification, and it is very basic so no documentation is required. A borrower can get pre-qualified with Samuel Scott Financial Group (SSFG) in several ways:
Once a Mortgage Advisor at SSFG has all the necessary information, he or she should be able to get a pre-qualification completed in as little as 10-15 minutes.
Now on the other hand, to be pre-approved means the borrower goes through a much more involved process. This involves pulling credit, submitting documentation (i.e. tax returns, W2s, pay-stubs, asset account statements), and running “DU.” Desk Top Underwriter (“DU”), is a program that gives Mortgage Advisors an electronic approval that then enables them to proceed with getting a full approval. A credit report needs to be pulled so the Mortgage Advisor has an accurate financial picture of the borrower. Also, when a client is being quoted a interest rate, it is based on his or her current credit scores. The Mortgage Advisor also needs to review the types of debts the borrower has, and this can only be done by having a credit report on hand. Ultimately, this is so the Mortgage Advisor can properly estimate how much the borrower can afford on a house. (When you are pre-qualified and/or pre-approved with Samuel Scott Financial Group, the initial credit report cost is covered by the company)
There is no cost to get pre-approved. A borrower can get pre-qualified with Samuel Scott Financial Group (SSFG) by:
The biggest advantage of being pre-approved for a home mortgage is, confidence that you as the home-buyer can afford the home that you are making an offer on. It also establishes a confidence between the real estate agents (both the selling agent and the buyers agent), that this borrower can perform during the escrow.
Dean Brown is a Mortgage Advisor with Samuel Scott Financial Group who believes that it is not only his job to not only help his clients find the perfect loan, but also to provide them a solution that fits into their long and short-term financial goals.
Dean has been a loan originator since 2002, and spent another 12 years before that working in the field of Property Casualty Insurance. With decades of direct experience working in and around the real estate sphere, he is exceptionally strong with the residential lending process. He considers himself a professional consultant, and helps clients understand every part of their loan, payment, equity, and cash flow objectives.
Since Dean started with a small broker, moved to a major bank, and then worked with a large developer/real estate and mortgage company, he has a strong understanding of the intricacies of the business. When he joined with Samuel Scott Financial Group in 2009, he knew he had found a strong fit. Both Dean and his new company shared the same commitment to customizing the loan process to fit client needs.
As Dean put it “I have found that I can do a better job meeting the needs of my borrowers if I know what is important to them regarding their home loan.” When you work with Dean, expect him to ask you a lot of thoughtful questions and return with a personalized plan for your loan.
Samuel Scott Financial Group is a boutique mortgage company recognized for superior customer satisfaction and the way they tailor the residential loan process to every individual client. Todd “Samuel” Pianin and Brian “Scott” Reynolds founded the company on the principles of long lasting relationships, and a sincere honest approach to every single individual we serve. Consistent and reliable, Samuel Scott Financial Group has been selected as The
President: Todd Pianin
Vice President of Sales: Russ Schreier
Mortgage Advisors: Christian Alvarez, Dean Brown, Mark Buchanan, Mitch Palmer, Brian Reynolds, Debra Roberts, Mark Robertson, Alex Scoma, Brian Shaw, Keith Sims, David Talbott.
Samuel Scott Financial Group is licensed by the CA Dept. of Real Estate license #01458652 and NMLS identifier 235584. ©2011 Samuel Scott Financial Group. All rights reserved.