Without good preparation, many buyers make the mistake of believing that when a lender pre-qualified them for a mortgage, they have been pre-approved for a home loan. Unfortunately, there's a world of difference between these two terms. 

Pre-Qualified
Getting pre-qualified is the initial step in the mortgage process. The initial pre-qualification step allows you to discuss any goals or needs you may have regarding your mortgage with your lender. You supply a Great Central Mortgage Broker with your overall financial picture, including your debt, income and assets. After evaluating this information, the broker can give you an idea of the mortgage amount for which you qualify. Pre-qualification can be done over the phone or on the Internet, and there is usually no cost involved. Loan pre-qualification does not include an analysis of your credit report or an in-depth look at your ability to purchase a home. At this point, the broker can explain your various mortgage options and recommend the type of loan that might be best suited to your situation. 

Pre-Approved
Getting pre-approved is the next step. You'll complete an official mortgage application (and usually pay an application fee), and then supply Great Central Mortgage with the necessary documentation to perform an extensive check on your financial background and current credit rating. From this, the broker can tell you the specific mortgage amount for which you are approved. You'll also have a better idea of the interest rate you will be charged on the loan and, in some cases, you might be able to lock-in a specific rate. With pre-approval, you will receive a conditional commitment in writing for an exact loan amount, allowing you to look for a home at or below that price level.

An advantage of completing both of these steps - pre-qualification and pre-approval - before you start to look for a home is that you'll know in advance how much you can afford. This way, you don't waste time with guessing or looking at properties that are beyond your means. In a competitive market, this lets the seller know that your offer is serious - and could prevent you from losing out to another potential buyer who already has financing arranged.

Getting Committed
The final step in the process is called a "loan commitment", which is only issued by a bank when it has approved you and the house in question. This means the home has been appraised at or above the sales price. A loan commitment letter is issued only when the bank is certain it will lend, so the commitment date on your purchase contract should be closer to the closing date than to the date of your offer.

Below are some tools to help you get started.  These tools will provide you with an idea as to how much house you can afford to buy and the amount of your month payments for a particular house.  Of course they are approximate numbers and cannot be considered 100% accurate or a substitute for the advice of a mortgage professional. 

 Great Central Mortgage Corporation
CA Dept of Real Estate License # 01135634
NMLS # 237919

847 E. Main Street
Turlock, CA 95380
Phone (209) 632-3200
Fax (209) 632-3267
ezeloan@aol.com
CA DRE Lic info (916) 227-0931