Home Loans In Huntsville, Alabama

Huntsville is Alabama’s most populous city. It is a place filled with rich heritage and high-tech opportunities, even earning the nickname “The Rocket City” because it is home to NASA’s Marshall Space Flight Center and the U.S. Army Aviation and Missile Command.

According to the National Association of Realtors, Huntsville made it to the real estate market’s top ten “hidden gems.” This means that the housing situation in Huntsville is gaining more recognition, which can impact your plans for homeownership. 

But before making your move, it’s crucial first to sort out your home financing options. If you’re like most potential home buyers, you’ll likely need to obtain a home loan in Huntsville. When considering home loans, you’ll come across the terms “pre-approval” and “pre-qualification.” 

Both are essential aspects of the home loan process, and it’s unlikely that any seller or agent will take you seriously without them. With that in mind, here’s what you need to know. 

Loan Pre-approval vs. Pre-qualification

Homebuyers often encounter these two terms. Some even make the mistake of interchanging one for the other. However, pre-approval and pre-qualification are entirely different, even though they share similarities. 

• Pre-qualification

Pre-qualification is when the lender gives a competent estimate of the loan amount. It doesn’t take long to be pre-qualified. In some cases, you don’t even need to go to the lender because pre-qualification can be done over the phone. 

In this process, you will inform the lender of your general financial statuses, such as outstanding debts, current income, and assets.

The amount quoted during pre-qualification is not the final loan amount, but you can use it as a price limit when you go home shopping. Once you’ve been pre-qualified, you’ll receive a pre-qualification letter from the lender, including letter expiry date, conditions, and disclaimers.

• Pre-approval

Getting pre-approved is the step after pre-qualification. Pre-approval is a much more “involved” procedure since you must present yourself to the lender. 

During pre-approval, you’ll be asked to complete the application process, submit documents, and go through verification and underwriting. Lenders will often provide a “conditional commitment” for the loan amount so that you can look for homes to buy.

The pre-approval process will include a complete review of your financial background. Lenders will pull and check your credit. Your file will be processed as if you found a house to purchase. After the verification process, your file will go through Underwriting to ensure all T’s are crossed and I’s dotted. After the underwriter reviews your file and documents, you will be given a “conditional approval.” You need a specific property to match the approval amount.

Huntsville, Alabama Mortgage Lender

Getting your dream house in Huntsville starts with pre-qualification and pre-approval. Capital Home Mortgage can help in both instances. 

Our mortgage experts will work with you to quickly get these steps out of the way so you can begin your house hunting in earnest. Once you’ve found the perfect home for you, we’ll help you find the right Huntsville home loan program for your needs. 

As a full-service, direct mortgage lender, we handle all aspects of the loan process, allowing for quicker processing, flexible underwriting, and comparatively lower fees. 

Get A Home Loan In Huntsville

At Capital Home Mortgage, we understand how stressful the home loan process can be, especially for first-time homebuyers. Rest assured that you can expect a more streamlined process from start to finish with us. 

Find the right home loan in Huntsville, Alabama, today. Get started by calling our loan officers at (205) 352-1030. 

Thank you again for your interest in Capital Home Mortgage Huntsville, and we look forward to providing your next home loan.