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Mortgage With Nicki

What Is A Mortgage Preapproval And Why Do You Need One?

What-is-Mortgage-Pre-Approval

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A mortgage preapproval is where you talk to a mortgage broker or mortgage professional and complete a mortgage application, including providing preliminary paperwork to support the details in your application.

It is very important to understand exactly what needs to happen to be fully preapproved versus only prequalified. I say this because many banks and mortgage professionals misuse the term preapproval and are in fact only doing mortgage pre qualifications. Let me explain further.

What Is Pre-Qualification?

A mortgage prequalification is an in-depth conversation where you share some information about your employment, income, current debts, and credit to see how much you can qualify for in terms of a mortgage amount. With a mortgage prequalification, you are not providing any paperwork to confirm any of the details you are providing. This means it is just a conversation around your situation but yet you may be told yes you will qualify, and this is how much you will qualify for.

What Is Pre-Approval?

Whereas with a mortgage preapproval, the information you provide is verified, therefore confirming whether you will qualify or not and how much you will qualify for. With a full preapproval, you complete an actual mortgage application, provide preliminary paperwork to confirm your employment and income, and your credit is looked at. This is all done to ensure you qualify and to confirm the amount of mortgage you qualify for. It also means a rate hold can be put in place for you and rate holds have been very important the last couple of years as mortgage rates have continually gone up.

So, do you see the difference between the two? One is a conversation and the other is a much more in-depth process. Now if you were buying a couch a conversation might be sufficient, but when you are buying a house, don’t you want to know with as much certainty as possible that when you fall in love with the perfect house, you will qualify to buy it?

This is why getting a full pre-approval with someone who takes the time to review your paperwork and credit is the best way to go. To put this another way, getting a full pre-approval means:

  • There shouldn’t be any surprises because we have reviewed a full application, verified the details up front with paperwork the lender will require, and have looked at your credit
  • We can confirm a house shopping budget based on verified information. Too many times in my career a client has told me how much money they make but when I gather the paperwork the lender will need to verify that income, they make less on paper. This means if you went out house shopping without verifying your income with your Broker, you could be shopping out of your actual price range.
  • You have done a lot of the work up front. This makes the process simpler and easier when you find that perfect house because then we just have to update the paperwork, not provide it all once.
  • A rate hold can be put in place while you house shop to protect you against future rate increases.

These are all reasons I recommend getting a full preapproval before house shopping. This is why I also recommend asking the person helping you what a preapproval means to them, this will ensure you are getting an actual preapproval and not just a prequalification.

Of course, you can also just call me and then you know when I say you are preapproved, that means a confirmed budget, a rate hold if necessary, and that I am confident you will qualify for your mortgage.

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What My Clients Say
Katelyn Perry
Katelyn Perry
2023-04-25
Nicki did a fantastic job of breaking down the whole process! As a first time home buyer with a slightly different situation Nicki made it very straightforward and was always super quick to answer any questions. I could tell she was looking in the best interest of myself and made sure I was able to get approved and within the budget I could afford. She kept in constant contact even when things were slow going. I’m grateful to have such a wonderful mortgage broker that took my concerns and questions very serious. I can honestly say I’d recommend Nicki to anyone needing a mortgage broker!
Bob Doornenbal
Bob Doornenbal
2022-10-04
Sometimes life throws you curveballs and in my case I needed someone with extensive mortgage knowledge to focus on a solution and not the problem. Nicki was referred to me after I had tried so many others and she quickly understood my challenges and went to work on the solution. She is very consultative, responsive and easy to deal with. Highly recommended for anyone looking for any type of mortgage.
Tyler Scott
Tyler Scott
2022-09-06
Nicki was beyond amazing. She spent the last year + working with me to help buy my first help. From answering thousands of questions, to providing honest critiques to get me in the right direction. Will use again in the future, and highly recommend!
Karen Bee
Karen Bee
2022-06-03
Nicki made the process almost painless, and was helpful and supportive every step of the way with my complicated and unique mortgage needs. Highly recommend!
Lori Sealock
Lori Sealock
2022-05-24
Nicki has been absolutely FANTASTIC to deal with regarding our new mortgage. She is very knowledgeable and answered all our questions. She makes you feel so comfortable throughout the mortgage process and she is very easy to talk to and a great listener. She presented our options and helped us pick the best mortgage for us. She was there for us 24/7 whether is was a call, email or text. I highly recommend you give her a call! Thank you so much Nicki for all you done for us! Lori & Derek
Mitchell Heber
Mitchell Heber
2021-12-22
I don’t have enough good things to say about working with Nicki. Always takes the time to answer any questions you’ve got, regardless of how in depth or rudimentary they are.
morgan horn
morgan horn
2021-12-02
We bought our first home with Nickis help last month. I Loved working with Nicki. She was positive, patient, and she had all of our stuff worked out within days of us making our offer! I also love that she is a local working momma getting her cut from Big Bank. Thanks Nicki!
Chris Calve
Chris Calve
2021-11-24
Nicki was fantastic to work with. She was very professional and made getting my mortgage painless and easy.
Travis Fleming
Travis Fleming
2021-10-24
Nicki was very helpful and knowledgeable from start to finish! She answered any questions I had with ease and helped me understand everything I needed to know about getting my first mortgage. I would absolutely use Nicki again as my mortgage broker and would have no issues recommending her to anyone else. Thanks a lot Nicki!
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