Interview Loan Officers

• The first and most important thing to remember in obtaining a mortgage pre-approval is not to go with the first person you speak to. Interview at least three recommended loan officers and find one who meshes with your personality and communicates well.
  
  Select a loan officer who asks lots of in-depth questions about your history and financial situation. Loan officers who do their homework upfront can provide you with the most accurate pre-approvals as well as be a great resource on getting your loan closed without any last-minute surprises.
  
  

Several Letters

• Getting several pre-approval letters in differing amounts will help you when you are negotiating the price of a property. Giving a seller a high dollar pre-approval letter with an offer that is less than his asking price is like showing your hand when you are playing poker. Have your loan officer match up your pre-approval letter with the offer amount you are submitting to a lender. This will help you immensely in obtaining the best price on a property.
  
  

Pre-qualification versus Pre-approval

• Mortgage terms can be confusing. Don't mistake a pre-qualification with a pre-approval.
  
  A pre-qualification is a predetermined set of questions that will be asked to determine a basic amount of what you can afford. None of this information is required to be documented, as it is a springboard for discussion about the home loan process. A pre-qualification has no time line for expiration.
  
  Conversely, a pre-approval will require verification and documentation of your income, debt and credit history. It will take longer to receive a pre-approval than a pre-qualification and pre-approvals are more difficult to get. However, a pre-approval is a prerequisite in a home purchase, so it is necessary to take that next step. A pre-approval will often expire 60 to 90 days from issuance.