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Credit Unions are known for their low-cost loans...
and Amarillo Community Federal Credit Union has some of the lowest rates available to our members. The next time you're ready to borrow, apply online by logging into your account. Or, you may mail, fax, call, or bring in your application to us. We can finance anything from a new vehicle to a computer to your next home. And our response time is usually within minutes from the time we receive your request.

So, doesn't it make sense to get your next loan from ACFCU? ...low rates, convenient repayment options, quick response time, and a friendly caring staff.

30-Year Mortgage

Why Pre-qualification and Pre-approval Helps Your Home Search

When you begin the process of obtaining a mortgage, the first question that needs to be answered is whether you want to be pre-qualified or pre-approved. Both have advantages, depending on where you are in your quest for a home.

To become pre-qualified, you have to submit general information about yourself and your finances to a broker or lender and that based on this unconfirmed data, the lender will issue a pre-qualification loan amount for you. This is not to be mistaken for a letter of approval with a fixed loan amount. That comes later when you allow the lender access to your confidential financial data.

The broker will match the borrowing criteria you have entered to its database of lenders and their underwriting guidelines, and an analysis will result in which your financial position is compared to general lender guidelines.

A pre-approval is something of a commitment for both sides. First, you agree to a loan. Then you give the broker or lender a check to cover the cost of a credit report search and analysis. The lender may ask for other information such as your last two or three bank statements and pay stubs.

Once the credit report is back, the lender should be able to provide you with a loan rate, the APR, lock the loan in for you if you wish, and provide you with a truth-in-lending closing statement which will outline the costs of your loan and what size check you will need to bring to closing. As quick as on-line applications are, the pre-approval loan package still takes about four days to receive. The lender will overnight it to you inmost cases.

A good idea is to check your credit yourself before you apply for pre-approval. Go to annualcreditreport.com and see where you stand. If there is a problem, you can work to get it resolved. You get three free reports a year by law now.

The first advantage the pre-approval can offer you is now you have a loan without having a specific property in mind. All you have to do after that is find the right home.

In the home hunting process, pre-approval also offers several advantages.

· You have a clearer idea of the amount you can spend.

· You may find that being pre-approved opens the door to types of homes and neighborhoods that you hadn't considered before.

· You will also be taken much more seriously when it comes time to choose an agent and negotiations with a seller.

· Once you find a home, you can move much more quickly. This is particularly an advantage if the seller has been transfered, has already moved or is moving to another home and will favor a faster closing contract.


Contact Lee Robinson for a free pre-approval today!


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