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Buying a home is a big moment in anyone's life, so it's always smart to start looking for a mortgage at the same time as you begin your home search. In the most specific term, the mortgage is a document in which the home buyer states the lender will hold a lien on a piece of real property until a certain amount of money is paid. In short, the mortgage applies to both this document and the loan that is used to secure the property. Luckily there are many different mortgage options available that you can look in to. During the home purchase it's important to note pre-qualification and pre-approval are not the same.

Obtaining a mortgage pre-approval you will be able to know how much house you can afford, and that will save you time during your property search. Being pre-approved for a mortgage gives you a lot a leverage when negotiating an offer to purchase. Seller's will see that you are a serious buyer who is ready, willing an able to buy. So what's the difference between a pre-qualification and pre-approval you ask? Pre-qualification provides the you with an estimate of the amount of mortgage that can be afforded. To pre-qualify for a loan, the lender will make a decision based on your income and debt information. Pre-approval, on the other hand, gives you a more solid figure by which to base your home search. Except for the appraisal and title search, the lender completes all the work of the complete approval. This includes credit checks and employment verification. Note that you are not guaranteed a mortgage loan through either the pre-qualification or pre-approval process. To approve you for a loan, the lender will require certain documents. This includes W-2's, income tax returns, pay stubs, child support or alimony (if applicable), bank statements for all your accounts and a copy of your credit report. It is best to start locating and collecting these documents as soon as you know you will be applying for a mortgage loan.

First, we suggest speaking with one of our preferred vendors. We work with the top mortgage bankers in the Dane County area and can help you get pre-qualified.