By Carlos Del Valle, Director de Retail & Sales Network
You are now ready to buy your first home. Now you need to ask your bank for that first orientation before submitting your formal application. In this orientation you will be able to find out what the possibility is of being pre-qualified for a mortgage loan.
What is a prequalification?
When the client has the first communication with the bank, the officer who assists the client will guide them and ask a series of questions. During this first interview, the banking officer will refer to the information provided verbally by the client, but since there is no corroboration of the information and verifiable data, a prequalification will be carried out subject to what the client has said is correct, that it is documentable and verifiable. Subsequently, the client will receive a good faith estimate of what the proposed transaction would be like if it were approved under the terms and conditions at that time.
What is a qualification?
The qualification is when the bank has already received all the documentation, has carried out all the corroboration of data and values that allows the institution to complete the process, submit it to the credit and risk analysis to determine if the application can be approved, rejected or a counteroffer must arise that makes the requested transaction viable.
When does final mortgage loan approval occur?
Final mortgage approval occurs after all documents have been obtained, evaluated, and information is verified. Finally, the information is analyzed by the underwriting unit, as well as by the credit and risk committee of the banking institution to establish the terms and conditions of the approval.
Occasionally, these terms may vary from the original ones, either due to the final appraisal value, the final repayment capacity or due to legal conditions, repairs or others. Sometimes, an estimate is received from the initial interview or from the filing of a loan application, but this does not mean that the mortgage transaction was approved.
We encourage you to contact us to obtain pre-qualification before you formally begin making a mortgage transaction.
To learn more about this topic before starting your mortgage procedure, click here. At Oriental we are more than ready to help you.
