Qualifying
Author: Terri Ewing | Date: July 25, 2008 | Filed In: Glossary
Qualifying Defined
Qualifying or what is also know as “pre-qualifying” for a mortgage is when the borrower provides information about their income, assets, credit, debts, etc. to the mortgage originator so they can analyze all the information and decide if the borrower can be approved or not and for what program.
In the old days, mortgage originators had to do all these calculations by hand and then decide all on their own if you are going to be approved. The only way you would really know is after an actual underwriter saw the file and rendered their decision. It was quite a bit of pressure on the mortgage originator to be right and come up with the same decision as the underwriter.
Now, there are computers that do the work for the originator. The same information is input and the computer spits out an approval. This isn’t even a pre-approval, it is an actual approval. It is the exact same approval the underwriter will use to approve your loan. The underwriter is mostly just checking the originators work and making sure all documentation is correct and in the file. It takes all the guess work out of the qualifying process.
If your mortgage originator is not using this computer system to qualify you, you are using the wrong originator.
Author: Terri Ewing
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