Speaking about mortgage service, there are actually various terms used to refer to something. Sometimes, they can be quite similar and make it easy for people to mistake it from one to another. One example for it would be none other than Chase Mortgage pre approval and prequalification. Let’s talk more about them to understand just how they are different and other related things to those terms here. In fact, it is important to make yourself aware of them to avoid mistaking them from each other. Now, let’s get down to it.
Mortgage Prequalification to Know About
Taking about pre approval and prequalification, we need to start from the prequalification one. Why, of course, it is because prequalification is what you get started from before you concern yourself with Chase Mortgage pre approval. If you are prequalified, the bank will give you preliminary statement. It will mention the amount of money you can borrow by basing it on both your income and asset information. There is nothing more to it than that. Chase Mortgage pre approval actually comes next right after the prequalification.
Mortgage Pre Approval Coming Right After
Once you are prequalified, the bank will ask both of your employer’s name and Social Security number. Why do you think they are needed for Chase pre approval? Why, of course, it is because they verify both your income and creditworthiness. Chase Mortgage pre approval will be issued once the bank has all the necessary documents for it. Then, the amount of money you can pay and the mortgage loan you can afford will be determined by an underwriter. Once the assessment is done, you will get preapproval letter from lender.
How the Letter Can Be Of Help to Buyers
Having this letter of Chase Mortgage pre approval can actually be of help to us in many ways. It is something that you have to present whenever you are about to bid for a home. If you have it in hand while the others are not, you are more likely to win the bid. For the seller, buyer with the letter of Chase Mortgage pre approval is seen as good candidate since the bank will likely give that buyer a loan. Chase mortgage sure has such guarantee to help us win the bid for a home in the more prepared way there is to do such thing.
The Use of the Terms Among All Lenders
You might have understood just what each term refers to here in Chase firm. However, let us tell you that the terms in other lenders or firms might refer differently to each other. The EverBank for example, has the preapproval term to refer to what we know as prequalification. Meanwhile, what we know as preapproval term is known as credit only approval in this lender. Depending on the lender, you better make sure of it first. If you choose Chase instead, you have the Chase Mortgage pre approval already described above.