e REALTY GROUP INC
Office: 631-929-9100
1530 North Country Road
Wading River, NY 11792


Pre-Qualification or Bank Commitments?

The Pre-Qualification is an informal process in which a mortgage company will offer an opinion on how much money a homebuyer may be able to borrow for their mortgage, based entirely on financial information provided by the client and obtaining and evaluating the client's credit report. It is not binding since it is not a commitment letter from a lender.

The Bank Commitment is a formal offer by a lender, which states the terms under which it agrees to lend money to a homebuyer. This will indicate the conditions (stipulations) that must be met prior to funding the loan. It is quite accurate as well as binding, and subject to appraisal and contract of sale. (The bank can withdraw the commitment if there is an adverse change to the borrower's income, credit or assets.) Only the bank commitment shows the total mortgage amount that will be available to the client. This process requires that all necessary documentation is completed, submitted and verified.


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