#21 Brookings, SD Mortgage Tip: Justin from Fairway Mortgage

Posted by Shane Andersen on Monday, December 4th, 2017 at 10:55am.

Prequalification vs Pre Approval


Alright, here we go, welcome everybody. Shane here from Century 21. Justin from Fairway Mortgage and it is Monday morning, 8:15 on the dot, means it's ready for our Monday morning mortgage tip. So I'll let Justin take it away. We've only got a couple of these left. I'm gonna take a couple weeks off here as we get closer to Christmas and then we'll start it back up the first of the year. But we got yourself to do this week and then one more next week, and then we'll be ready for the Christmas season. Hopefully you are too, and get ready again for 2018. So Justin, what is the tip today. 

Alright, well first you know, apologies. I'm getting over a lil head cold. 


I think you mentioned you were too. It's that time of year again, but the tip I wanted to go over today was the difference between a prequalification and a preapproval. And they can be very similar, but typically a preapproval will hold a little bit more weight than a prequalification because with the preapproval, an underwriter will actually look at your tax returns, your pay stubs, your W2s, maybe your bank statements if need be. They'll look at all- your credit report, they'll look at the whole file and underwrite that file. Whereas with the prequalification, the underwriter doesn't look at that. Just the originator looks at that. And it's not always necessary to get a preapproval because if you have a straightforward situation with a husband and a wife who are salaried and don't have any overtime, bonus, commission income, that prequalification is gonna work just fine because it's a pretty straightforward situation. But the one thing to take into consideration is not all lenders will offer a preapproval. At Fairway, fortunately, we are able to offer that. We typically see about 24 to 48 hour turn time on those preapprovals, as far as from when that borrower is able to get me all of their documentation to the point where we have that answer. It's usually that 24 to 48 hour turn time, so it can be done pretty quickly. 

Pretty quick. And Shane, I don't know if you guys see a lot of that in town. If you were to be in a situation where you're looking at two identical offers, one being a preapproval, one being a prequalification, what would your feeling on that be?

Yeah, I think obviously, especially through Fairway, we know that you've gone through those steps, and having that preapproval knows that these guys are good for it, for the most part, and barring any issues going forward, should be good to go, so. 

Yeah, as long as they don't go out and buy a Ferrari, then we're good to go. 

Right,remember that. We've talked about those before. 

Yeah, and that another good, brief tip to bring up is after you've started that process, make sure not to take out any more debt, or do anything along those lines, accept a new job or anything like that. Cause that can change everything. -



Good tip, so there you have it. I'll have Justin's information on the top, below, on the sides. Feel free to reach out to him if you have any questions. We're always looking for questions from you. If you have anything that we have not answered yet, please reach out to us. We'd be happy to answer that on the next episode, whether it's the next one for 2017 or going forward into 2018. So Justin, I appreciate you doing this, I think this is the 21st episode total here, so I think. So thank you for being a part of that, and I look forward to extending it into 2018, and hopefully you do too. And everybody else out there that's helped me to this point here too, so thank you. Anything you wanna add since you won't be on until 2018 now. 

Have a Merry Christmas and a Happy New Year, and we'll see ya next year. 

Perfect, thanks for watching guys and we'll be in touch next week. We'll talk to you then, bye.

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