If you’re looking to buy a home in Denver and finally stop renting, you’ve probably run across the terms prequalification and preapproval. As a matter of fact, you’re probably seeing both of these words quite a bit – but what do they actually mean and what is the difference between the two, if in fact there is any difference?
Now, essentially, the two words actually should mean the same thing; namely that you’ve been approved for a loan from Colorado mortgage lenders. In reality, however, it often means exactly nothing. The market is crowded with self-appointed mortgage experts, many of them offering all manner of things under the name of prequalification or preapproval. In many cases, whet they’re offering to consumers is anything but a good thing.
The most important thing to remember is that the majority of these companies who hold out the promise of preapprovals don’t actually have any way to lend prospective homebuyers any money at all, making their prequalification and preapproval promises worth less than the paper they’re printed on!
FHA Pros Online Is Different
Unlike many other so-called Colorado mortgage lenders, FHA Pros Online is a direct mortgage lender and actually can provide financing to homebuyers. When we extend a prequalification, it means exactly what it’s supposed to mean: you’re approved for a Colorado home loan.
Buyers apply for a mortgage with us and we check their credit, verify all of the necessary documents and our own underwriters look at the application before we make any promises about any Denver home purchase loans. Since we’re a direct lender, we can provide homebuyers with a preapproval which genuinely means something. We’re the people who will actually provide you with the financing you need once you close on your new home.
We only commit to a mortgage loan once we have all of the necessary elements: title, appraised value of the property, a valid purchase contract and the knowledge that the property is insurable. That’s how we go about approving a home loan at FHA Pros Online; it’s different than how many other “mortgage professionals” do things, but when home buyers work with us, they know that they’re actually receiving an approved loan which won’t disappear on them later.
This is the kind of peace of mind that helps homebuyers take their minds off of the financing issues, secure in the knowledge that Colorado mortgage lenders won’t fall through at the last minute. With this taken care of, you can concentrate on what’s really important to you – finding the perfect home in Colorado.
There’s no reason to navigate the complex and sometimes risky process of buying a home without the help of FHA Pros Online. We make sure that all of the paperwork is in order and give you the peace of mind that comes from knowing how much home you can afford ahead of time – and that your financing will be there when it comes time to close on your new home.
Why you must stop renting
