How Much Can You Afford?

One of the most important factors in determining your financial budget is getting pre-approved for a mortgage.

Pre-Approval vs. Pre-Qualification

Pre-approval is a bona-fide loan decision based on the applicant’s credit report and information provided during the application. When Coldwell Banker Home Loans issues a pre-approval, in most cases, it means that we’ll fund the loan pending an appraisal of the property, a title report, and a purchase contract.

When you are pre-approved for a mortgage, you are a stronger buyer with a greater chance of having your offer accepted.

Pre-qualification is not a mortgage approval but simply an estimate of what you can afford. The lender asks basic information regarding your income, monthly debts, credit history and assets, and then uses this information to calculate an estimated mortgage amount. Based on what you say, the lender has not committed to your loan, therefore you have not received guaranteed funds.