What’s the Difference? Pre-Qualification, Pre-Approval, and HUNT Mortgage’s Pre-Purchase Commitment

Have you ever wondered what the difference was between pre-qualification, pre-approval, and HUNT Mortgage’s Pre-Purchase Commitment? Let us help you navigate these terms as you prepare to begin the home financing process.

First up is pre-qualification, the very first step you should take in your homebuying journey:

• This is a “numbers review” only – you will provide information on your financial standing, including income, debts, savings and credit history.
• No validation needed at this stage – this step does not require documentation such as W2s and bank statements.
• An estimate will be made on how large of a mortgage you can afford.

So what makes pre-qualification different from pre-approval? 

• After being pre-qualified, the next step is to get pre-approved for a mortgage.
• Why get a pre-approval? Pre-approvals provide more accurate information regarding potential home loan costs.
• Also, a pre-approval consists of a fully underwritten review of your income, assets, and credit to determine what you qualify for, conditional only on property-related items.

Now that you have an idea of the differences between pre-qualification and pre-approval, what exactly is the HUNT Mortgage Pre-Purchase Commitment Program, and how can it help you have a competitive edge when you enter the house hunt?

Take a look below for some of the details about this exclusive program: 

• The HUNT Mortgage Pre-Purchase Commitment Program delivers a fully underwritten commitment, subject to collateral conditions 
• We back our commitment with a $1,000 guarantee. If you aren’t able to close on a transaction because your mortgage application is denied, HUNT Mortgage will pay the seller $1,000 
• This guarantee distinguishes HUNT customers from other buyers a seller may be considering, and has no cost and no obligation to you or the seller. Terms and conditions apply. 

To learn more about the Pre-Purchase Commitment, and to get started on your homeownership journey, contact one of our experienced Mortgage Consultants today!