Mortgage Myth: Pre-Qualification Means You’re Guaranteed The Loan Amount

Mortgage Myth: Pre-Qualification Means You’re Guaranteed The Loan Amount

Mortgage Myth: “When you get pre-qualified with a mortgage lender, it means that you’ll be guaranteed the entire loan amount.”

Truth: Pre-qualification is an important step in the loan process, it will not guarantee your actual loan amount.

Getting pre-qualified is a precursor to getting pre-approved for a home loan and is not a commitment to lend. Being pre-qualified is simply an indication that your financial history and information has been reviewed by a lender and that you’re ready and able to submit a formal home loan application.

With that being said, getting pre-qualified is a smart strategy and an important first step to take before you begin the task of shopping for a home. This simple process helps lenders, like Summit Mortgage Corporation, assess what kind of mortgage and the loan amount that you may be qualified to obtain.

When you have a pre-qualification letter from Summit Mortgage Corporation in hand, you’ll know how much you can afford before you start house hunting. Pre-qualification letters also demonstrate to real estate agents and home sellers that you’re serious about making an offer – which will come in handy in this competitive real estate market. Sellers may be more willing to accept a buyer’s offer when they know that a lender has already reviewed certain credit, and perhaps, qualifying loan documents essential to the transaction.


The Pre-Qualification Process

Different lenders will have different pre-qualification processes, due to pre-qualification not being standardized in the lending industry. As a direct lender in Portland, Vancouver, and Spokane, we can give you the inside scoop as to what our process is like and what you can expect from Summit Mortgage Corporation.

Typically, pre-qualification is based on your:

  • Credit History

  • Down Payment Amount

  • Debt-to-Income (DTI) Ratio
  • We look at pieces of your financial history and current financial standings to determine what loan amount that you will be pre-qualified for. Contact us, and we’ll let you know the exact information that we need from you to conduct a preliminary review of your asset and income information.

    Getting pre-qualified with Summit Mortgage Corporation is simple. We provide free no-obligation pre-qualification consultation to help you learn what’s possible for you and your family. You can get pre-qualified with Summit Mortgage Corporation by:

    Giving Us a Call

    Sending Us an Email

    Stopping By Our Office


    Are you ready to being your home search? Start by getting pre-qualified! Contact us today!



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