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We recommend the services of Anthony Piccone at 7th Level Mortgage LLC
7th Level Mortgage is an award winning veteran owned mortgage company located in Cherry Hill, NJ.
Prequalification vs. Preapproval
Knowing how much you can afford before you start looking for a home can save you time and frustration. Getting a clear picture of your budget will ensure that you don't fall in love with a house you can't afford.
There are two ways to determine how much you can afford: prequalification and preapproval.
A prequalification involves the mortgage lender asking a few questions about your income, financial assets, and any debt you may carry. The lender will also pull your credit report. You may receive a prequalification letter from the lender telling you approximately how much you may be able to borrow.
A preapproval also involves the lender reviewing your financial records and credit history, but it goes a few steps further than a prequalification. When you get preapproved, you'll also complete a mortgage application and the lender will underwrite (or fact check) the information you provide. Once you're preapproved, you'll receive a preapproval letter stating the amount.