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The three types of pre-approval at o2 Mortgage


The home-buying competition can be challenging, so it’s essential to get your financing in order before you start looking for a home. A simple pre-qualification won’t seal the deal in today’s market, especially when a home has multiple offers.

When you start applying for a mortgage, you will need to consult a mortgage professional to discuss your qualifications. Here are three basic types of approval for home financing:

Start with a pre-qualification conversation

Pre-qualification is your most basic form of approval. This consists of a phone conversation between you and a mortgage professional. The applicant’s income, job history, down-payment, and credit are discussed in this conversation. With pre-qualification, no formal approval letter is issued by the mortgage professional.

Submit your documents for pre-approval

Once past the pre-qualification stage, you will send essential documents to your mortgage professional, like income and assets, to get pre-approved. We will also pull your credit report in what is known as a hard inquiry. Once that’s complete, your professional mortgage will host a call with you to complete the application and review options specific to your qualification and affordability. Based on those findings, your mortgage professional will issue the pre-approval letter.

Pre-approval helps you stay within budget and manage your expectations when shopping for a home.

Stay competitive in the housing market with a Platinum Approval

Once pre-approval is complete, the file is submitted to the underwriter for review as if you are already in contract. Once conditional loan approval is used, income and asset documents are again obtained for review.

Your mortgage professional will review the results of the conditional loan approval and, when appropriate, offer a Platinum Approval letter, stating no loan contingencies are needed on offers.

When you are in a competitive market, the Platinum Pre-Approval puts you, the buyer, in the best possible situation. In many cases, it can be viewed by sellers as the equivalent of a cash offer on a home.

If you have questions about the pre-approval process, contact the o2 Mortgage team!

Get approved for a mortgage loan today

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