Before you begin to shop for a new home, you should set up a time to meet with a loan officer so we can figure out how much you can afford. This will put you in a better position as a buyer. That’s when it is important to understand the distinction between being pre-qualified for a loan and pre-approved for a loan. The difference between the two terms will be crucial when you decide to make an offer on a house.

To get pre-qualified for a loan, your loan officer will collect information about your debt, income, and assets. The loan officer will look at your credit profile and assess goals for a down payment and get an idea of different loan programs that would work for you. They will issue you a pre-qualification letter indicating the amount you are pre-qualified to borrow.

It is important to understand that a pre-qualification letter is just an estimate of what you are eligible to borrow, not a commitment to lend. Getting pre-approved for a loan gives you competitive advantage when the time comes to bid on a home because you have been approved for a loan for a specified amount.

To get pre-approved, you will complete a mortgage application and provide your loan officer with various information verifying your employment, assets and financial status such as W-2 forms, bank records and credit card statements. We’ll review your mortgage options and submit your application to the lender that best meets your needs. Once the application process is complete you will receive a pre-approval letter indicating the amount your lender is willing to lend you for your home.

A pre-approval letter is not binding on the lender; it is subject to an appraisal of the home you wish to purchase and certain other conditions. If your financial situation changes (e.g. you lose your job), interest rates rise or a specified expiration date passes, your lender must review your situation and recalculate your mortgage amount accordingly.

Have more questions about getting pre-approved? Call California Capital Mortgage Company at (916) 456-1000 or email us by filling out the form below. It’s our job to answer lending questions, so we’re happy to help!

Company Licensing

California–BRE | Real Estate Corporation License Endorsement | Lic/Reg #01526222

California–DBO | Finance Lenders Law License | Lic/Reg #60DBO44405

North Dakota  | Money Broker License | Lic/Reg #MB102669

Utah-DRE | Mortgage Entity License | Lic/Reg #9029312/ 9033335

Company NMLS ID #294561

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Sacramento, CA 95684

401 Watt Ave. Suite 5

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