Michael Isaacs

Branch Manager • Loan Originator

  • (614) 383-7341
  • About
  • Blog
  • Mortgage Info
    • First Time Home Buyer Tips
    • First Time Home Seller Tips
    • Closing Costs
    • Home Appraisal
    • Home Inspection
    • Loan Checklist
    • Loan Process
    • Loan Programs
    • Mortgage FAQ
    • Mortgage Glossary
  • Reviews
    • Read or Write Reviews
    • Additional Reviews
  • Contact

A Few Common Misconceptions About Mortgage Pre-Qualification

August 25, 2015 by Michael Isaacs

Mythbusting: Correcting A Few Common Misconceptions About Mortgage Pre-qualificationIf you’re shopping around for mortgages, you’ve probably heard about pre-qualification processes – or maybe even received a pre-qualification offer in the mail. Lots of prospective homeowners hold misconceptions about what exactly pre-qualification is and how it works, and it leads them to opt into poor mortgage deals.

But by understanding how pre-qualification works, you’ll be able to find the right mortgage for you – at the best possible rate. So what is mortgage pre-qualification, and what isn’t it? Here are three common pre-qualification myths that you may have heard.

Myth: Mortgage Pre-qualification Commits You To A Specific Lender

Many homeowners mistakenly believe that being pre-qualified for a mortgage commits them to a specific lender. In truth, being pre-qualified only creates an opportunity for a lender to work with you.

The pre-qualification process doesn’t involve any loan contracts and doesn’t require you to pay the lender. Few homeowners know this, but you’re actually not at all committed to any particular lender until you sign the closing documents.

Pre-qualification is also generally a free process, although some lenders will ask you to pay the $20 fee it costs them to check your credit report. Typically no lender will ask you to pay more than $20 during pre-qualification.

Myth: Rate Shopping Hurts Your Credit Score

Another common myth is that shopping around for the best rate will hurt your credit score as a result of having multiple credit checks done. Some lenders may tell you this is true in order to discourage you from checking out other lenders. But according to FICO, mortgage inquiries aren’t handled the same way that other credit inquiries are.

Mortgage pre-qualification may seem like something you don’t want during a house hunt, but in truth, it’s really just a small gesture lenders make in order to make the mortgage process faster and simpler. If you’ve been pre-qualified for a mortgage, you will still need to go through the standard application process before you’re approved. To learn more about the mortgage application process, or to apply for your new mortgage today, contact your trusted mortgage professional.

Filed Under: Home Mortgage Tips Tagged With: Home Mortgage Tips, Mortgages

Michael Isaacs

Contact Michael


CEO

NMLS #26591 • AZ License #BK-0904162
Licensed in: AZ, CA, CT, FL, IL, KS, KY, ME, MD, MO, NH, NJ, OH, PA, TN, VA.
Direct/Office: 614.383.7341
michael@gomortgage.com
4215 Worth Avenue, Suite 220, Columbus, OH 43219
RATE QUOTE →
GO Mortgage
Company NMLS #1018

How can I help?


0 / 180

Let’s Connect!

Keep Up to Date with the Latest Mortgage News!

Recent Articles

  • 3 Things That Will Absolutely Kill Your Chances for a Mortgage Approval
  • Mortgage Interest Rate Versus APR: What To Know
  • Navigating A Market With Higher Interest Rate
  • Understanding Mortgage Pre-Approvals and How to Avoid Being Declined for One
  • What’s Ahead For Mortgage Rates This Week – March 20, 2023
Equal Housing Lender
GO Mortgage, LLC, NMLS ID #1018
For licensing information, go to: www.nmlsconsumeraccess.org

Privacy Policy | Disclosure Information
The content on this website is written by Michael and reflects his opinion, and not the opinion of GO Mortgage.

Our Location


4215 Worth Ave
Columbus, OH 43219

Copyright © 2023 · Powered by MySMARTblog