Getting Started

Getting Pre-qualified / Approved

Over the years we have met with many people who had a lot and knew the exact house plan and level of finish they wanted, but after we spent hours drawing, changing, and estimating their plan and gave them a price, they discovered it was more than they could afford. That can be a huge emotional let down for the client and a colossal waster of our time and resources. This has happened so many times over the years that the first question we ask now when meeting a potential new client the first time is have you been pre-qualified or pre-approved for financing? If the answer is no our meeting comes to a polite but quick end.

There is a difference between getting pre-qualified and pre-approved, but both processes start with meeting with a lender and filling out some paperwork which is a questionnaire about your income and debts. It is not an actual application. That happens later if and when you decide to work with that lender. To be pre-qualified the bank will briefly review the information you give them then issue an opinion as to whether they can offer you a loan and the maximum amount they are willing to lend. This is a non-binding opinion because the bank does not verify the information you provide in your questionnaire nor do they require you to provide any financial records.

To be pre-approved the bank goes to the extra step of verifying the information you provided meaning you have to submit sensitive personal financial information like pay stubs and tax returns for them to review. The opinion they offer is still non-binding because you have not submitted an actual application, but it is a more thorough and accurate process. Before making application with a specific lender I recommend you shop multiple lenders to get the best rate and program that works for you; however it is really not necessary to go to multiple lenders to get pre-qualified or pre-approved since the opinions that are offered are not binding.

Mortgage Pre-Qualification Application (PDF, 308 KB)