Watch your Wallet with Alan Akina - Pre Qualification vs. Pre Approval

5 Dec 2013 · 1 min

Watch on YouTube

1:17

This content was created by Alan Akina. This content was uploaded by Alan Akina. This is a YouTube video titled "Watch your Wallet with Alan Akina - Pre Qualification vs. Pre Approval" (Wake Up Today segment) published 2013-12-05. The clip features Alan Akina explaining the difference between mortgage pre-qualification and pre-approval (what each involves—credit checks, income and asset verification—and the greater reliability of a pre-approval) and advising viewers to seek a true pre-approval. The excerpt includes an additional narrator/host alongside Alan.

Chapters

Well, if you're in the market for a new home, it helps to be pre-qualified. But what does that exactly mean? Alan Akina explains.
Good morning, gang. Are you shopping around for a new home? Well, if you are, there's so many things you need to know and do before you can get the keys and move in. And one of the biggest things is knowing the difference between a pre-qualification and a pre-approval for your mortgage. Knowing the difference can save you a tremendous amount of stress. Now, a prequalification typically means you have spoken to a lender that may or may not have pulled your credit report. The lender will verbally discuss your work history, debt, payment history, and assets. Actual verification of assets, payments, and liabilities may not have occurred at this stage. While this is better than nothing, this qualification does not guarantee that you will get the loan. Now, a preapproval is much different. It entails a strict review of your credit, income, down payment, and asset verification. In this stage, credit reports are thoroughly dissected and underwriting software is used. Now, if you're serious about buying a new home, I suggest that you request a true pre-approval to know exactly where you stand. For Wake Up Today, I'm Alan Akina. See you on Monday.