soft-pull-mortgage-pre-approval
What is a Soft Pull Mortgage Approval?
A soft pull mortgage pre-approval will verify your eligibility using the data reported on your credit report using a soft credit inquiry. This soft credit inquiry is accurate but not does not register on your credit report as an inquiry, and therefore does not hurt your credit score.
The soft pull gives you the ability to shop multiple mortgage lenders loan offers without hurting your credit score. EquiFund offers an instant online mortgage pre-approval marketplace that will allow you to compare multiple lenders to identify the lowest rate and fee loan for you.
Unlike a traditional loan pre-approval, a soft pull pre-approval empowers you to get the best loan in market because consumers can shop and compare loan offers without harm.
In this article, we will explore soft mortgage approvals and their benefits and address some frequently asked questions regarding this innovative approach to home loans.
No credit pulls, spam calls or emails. Just stupid low rates.
Get Pre-Approved or Try the Mortgage Calculator.
What is the difference between Hard and Soft Pull Mortgage Approval?
A Soft pull mortgage pre-approval is the same as a normal loan pre-approval with exception of the type of credit report inquiry being used to issue a verified online instant mortgage preapproval letter.
Credit report inquiries now offer two different reports a soft pull or hard pull credit inquiry. Unlike a hard credit pull inquiry that can lower your credit score, soft inquiries do not lower your credit score. Therefore, as a consumer you can shop multiple lenders by using soft pull inquiries.
Soft pull mortgage pre-approvals still require the submission of all your income and asset documents to verify full eligibility.
The soft mortgage approval is an informal evaluation of your creditworthiness and how much home you can afford.
The soft mortgage approval does not affect the FICO score.
Benefits of Soft Mortgage Pre-Approval:
Privacy:
Soft credit inquiries are not reflected on your credit report and will not be made public to solicitors who purchase credit information from the credit agencies. Whereas a hard credit inquiry registers the inquiry on your credit report.
Many mortgage companies will purchase data on borrowers that have recently had a hard credit inquiry for a mortgage known as Trigger leads. Unfortunately hard credit inquires create 100's of unwanted phone calls to homebuyers and homeowners that are not on the National Do Not Call List.
Rates 1% lower than most banks at Equifund Mortgage® | See real pre-approved loan offers.
Get Pre-Approved Online. See Loan Offers in 3 minutes.
Verified Loan Pre-Approvals:
A soft credit inquiry mortgage pre-approval has the same authority and credibility as a hard credit inquiry loan pre-approval.
Competitive edge:
The value of a soft credit inquiry mortgage pre-approval is that homebuyers and homeowners do not need to commit to any specific mortgage lender while getting pre-approved and comparing mortgage loan options.
The value of comparing multiple mortgage lenders lpre-approved loan offers could be the difference of thousands of dollars saved in interest charges by finding the best loan for you.
Reduced stress:
By using a soft pull credit inquiry for a mortgage pre-approval, applicants will avoid the 100's of phone calls from unwanted mortgage solicitors.
Soft mortgage approvals alleviate some of the anxiety associated with the uncertainty of the mortgage application process, creating a smoother home-buying experience.
Where can I get a Soft Pull Mortgage Pre-Approval Online?
EquiFund, an equal housing lender, provides an online mortgage marketplace that uses an automated mortgage app that provides soft pull credit inquiry mortgage pre-approvals with interest rates 1% lower than mortgage rates most lenders and banks guarantee.
By eliminating the need to pay loan originators, the mortgage app reduces costs for borrowers. The mortgage app translates to a lower interest rate of 1% for home loans.
This app will determine how much home the borrower may afford to purchase. The borrower may also get an idea of how much the mortgage insurance will cost when applicable.
The app will identify the lowest rate and fee mortgage preapproval online and issue a verified mortgage preapproval letter for the borrower in approximately 3 minutes. This soft pull mortgage pre-approval is necessary to start the home-buying process.
The mortgage preapproval letter will help the borrower when shopping with real estate agents for a home. This preapproval letter will confirm their eligibility when buying a home with their real estate agent and home sellers.
Our mortgage app will generate both a mortgage pre-qualification that does not rely upon verification of income documents or a credit inquiry and a verified mortgage preapproval that will use the borrower’s credit report and their income and asset documents that they may upload to receive a verified preapproval letter.
No credit pulls, spam calls or emails. Just stupid low rates.
Get Pre-Approved or Try the Mortgage Calculator.
How to compare multiple soft pull mortgage pre-approvals to find the best loan?
Applicants will want to compare mortgage pre-approvals by using the annual percentage rate that is quoted next to the note rate displayed in the list of pre-approved loan options.
If you elect to use EquiFund's online mortgage marketplace, the app will order all pre-approved loan options from the lowest annual percentage rate to the highest being on the bottom.
In just a few minutes, the mortgage app returns actual loan offers with mortgage rates 1% below most banks’ and lenders’ offers. We guarantee to deliver the lowest rate and fee mortgage preapprovals online.
The app will identify the lowest pre-approved interest rate and fee loan from the Nation’s best lenders in our marketplace guaranteed.
Benefits of using EquiFund’s Soft Pull Mortgage Pre-approval 3-minute App
- Get Instant Online Mortgage Preapprovals
- Automatically emails letter of preapproval.
- Guarantees the lowest interest rate and fee home loans in the marketplace.
- This app will save borrowers more on their next home loan.
- Get 10% more buying power for free than most home loan offers!
- Online streamlined loan shopping, preapprovals, and loan closing process
- EquiFund completes all the work from origination through funding.
- Non-Bias home loan lending that compares multiple lenders’ loan offers all in one user session.
How do borrowers use this Soft Pull Mortgage Pre-Approval Online app?
The mortgage app is straightforward and quick to use. It works just like a standard calculator. It will ask the borrower basic information that they already know.
This online app is designed to simplify the process of finding the lowest cost loan and only takes a few minutes to answer questions and will automatically capture the best home loan in our marketplace for the borrowers.
The mortgage app is a loan preapproval calculator that will pre-approve the borrowers and provide actual interest rates and closing cost loan options in under 3 minutes.
The app is fully transparent, and borrowers will see all the lending terms and information like required cash to close, monthly payments, closing costs, and more.
Rates 1% lower than most banks at Equifund Mortgage® | See real pre-approved loan offers.
Get Pre-Approved Online. See Loan Offers in 3 minutes.
7 steps to use the soft-pull mortgage pre-approval app?
- Click the Apply Now
- Answer all the questions like annual income, credit score, purchase price, down payment, and monthly bills like auto loans, credit cards, and assets.
- Review the borrower’s mortgage options and terms. The lowest rate fee loan determined by APR appears first in the results list.
- Select the borrower’s preferred loan choice.
- Optional-upload financial documents.
- Schedule a call back time or call EquiFund Mortgage to review.
- Check their email for the mortgage preapproval letter.
Once the borrowers provide this basic information, the app will process their file and verify eligibility and their instant online mortgage preapproval will be generated immediately.
The online app will sort the list of pre-approved home loans based on their profile, with the very best being at the top of the list.
Information displayed on the pre-approved loan options page:
The app will identify all eligible and pre-approved loan programs by performing all necessary calculations to return a list of pre-approved loan options. The app will show the borrowers all of the following items:
Online Pre-approved Loan Option Results:
- Pre-approved Loan Amounts.
- Pre-approved Purchase Price.
- Loan to value based on down payment.
- Annual percentage rate.
- Debt-to-Income Ratio
- Monthly payment
- Closing costs
- Monthly mortgage insurance
Soft Pull Mortgage Pre-approval Process
The home buying journey starts with finding the lowest interest rate and closing cost loans for which the borrowers are pre-approved.
The mortgage preapproval process has three components that are all interrelated and required to issue a reliable preapproval decision and a verified mortgage preapproval letter.
1. Mortgage Pre-qualification:
The mortgage process starts with pre-qualifying, which means the lender or our online app will rely upon the information the borrowers provide to determine eligibility. This is called mortgage pre-qualification.
2. Mortgage Preapproval with Credit Report:
The second step requires authorization from the borrowers to make a soft or hard credit report inquiry. After completing the first step, mortgage pre-qualification, the borrowers’ credit history, and credit score will be reviewed to verify that the credit ratings meet the loan program’s underwriting guidelines.
3. Verified Home Loan Mortgage Pre-approval
The third and final step provides the most accurate loan preapproval.
The Verified Mortgage Preapproval process requires the home loan originator to verify all the income and asset documents and a full review of the borrower's credit profile to render a verified mortgage preapproval letter.
Just three simple steps to find the best loan approval to get approved, the borrowers may use our app in less than 3 minutes.
Should Borrowers apply with different lenders or use this online mortgage preapproval platform?
Applying with different home loan providers will require hours of unnecessary work and multiple credit pulls. In addition, to make an educated decision, the borrowers will have to analyze each loan estimate to compare loan offers. EquiFund’s app does all of this in under 3 minutes.
Use our online preapproval platform that provides multiple pre-approved home loan offers from the Nation’s best providers. This platform will validate their mortgage preapproval and identify the marketplace’s lowest interest rate and fee loan.
This online mortgage preapproval platform usually offers 1% lower interest rates than most other home loan providers. That equals approximately 10% more purchasing power on their next home regardless of their selected loan product.
IMPORTANT: Unfortunately, most homeowners will stop loan shopping with the first lender they obtain a mortgage preapproval with. When they buy a house, they will most likely overpay by 10% of the price of the home.
How long is a soft pull mortgage pre-approval letter good for?
In general, credit verified preapproval letters will be valid for 60 days. If the borrowers have not found a home after 60 days, they must re-apply for credit check preapproval.
They will be re-approved if there are no major credit events or loss of income during this time.
If they exceed 60 days, be prepared to update the required documents for a loan preapproval.
What not to do after getting pre-approved for a home loan?
- Maintain adequate balances in the bank account with funds for down payment. Do not take out additional lines of credit like auto loans, credit cards, or personal loans.
- Continue to make all payments on time.
- Contact the lender before making any additional purchase using credit.
What are the online mortgage pre-approval requirements?
The minimum factors for home loan prequalification and closing require a middle credit score of 580 or higher and a minimum of 3.5% down for non-veterans.
Veterans will qualify for a 0% down payment and a minimum credit score 580.
The loan amount and gross monthly income to get approved should be slightly more than double that of all the borrower’s monthly debt payments like credit cards, student loans, personal loans, and auto loans.
- Employment Verification
- Income Verification
- Job History
- Debt-to-Income Analysis
What are the requirements for each loan program in this online mortgage pre-approval app?
The app incorporates all the loan programs and products offered by Fannie Mae, Freddie Mac, and Ginnie Mae. We also include all eligible first time homebuyer programs.
The online app uses the underwriting guidelines from multiple National lenders to verify eligibility and preapproval.
The app will provide adjustable rate mortgages and fixed rate home loans for primary residences, investment properties, and secondary residences.
While each lender may have different requirements and interest rates, our online system matches the borrower’s credit profile to the best home loans and lending terms.
Below is a list of loan programs and products, credit scores, and down payment requirements.
No credit pulls, spam calls or emails. Just stupid low rates.
Get Pre-Approved or Try the Mortgage Calculator.
Online Mortgage Loan Programs Minimum Credit Score Requirements
- FHA Loans: 580
- VA Loans: 580
- Conventional Loans: 620
- Jumbo Loans: 640
- Bank Statements Loans: 640
- USDA Loans: 600
Online Home Loan Programs Minimum Down Payment Requirements
Each home loan program listed below has unique underwriting loan approval guidelines. One main factor is how much money will be used as a down payment. The down payment determines the maximum Loan-To-Value allowed per loan program.
- FHA Loans: 3.5%
- VA Loans: 0%
- Conventional Loans: 3-5%
- Jumbo Loans: 10%
- Bank Statements Loans: 10%
- USDA Rural Loans: 0%
Once the borrowers complete the online app, they will see how much house they may afford. The borrowers may select their desired pre-approved home loan option; the next step is to submit all requested documents to complete the underwriting process for final loan approval.
Are there any terms and conditions on a mortgage pre-approval letter?
Yes, a home loan preapproval is based on the information the borrowers provide and the income and asset documentation they provide.
Most homebuyers understand that they should keep their monthly debts, income, and savings and continue making monthly payments on time during home buying. Any changes to the credit report used to validate and verify a mortgage preapproval may require re-verification.
If the borrower wants a mortgage preapproval letter, they may get pre-approved immediately through our online app.
What information is needed for Online Mortgage Pre-approval on this site?
Based on the mortgage preapproval checklist, the borrowers only need to provide basic information like gross monthly income, estimated credit scores, estimated monthly bills, and a few other simple questions.
It only takes about 3 minutes, and they will be provided with real home loan options. The results will surprise them.
The online preapproval app simplifies the process of buying a home.
Information Needed for Online Mortgage Pre-approval:
- Enter the borrower’s credit score.
- Input the borrower’s gross monthly income.
- Input any rental property income.
- Provide monthly bills like credit cards and auto loans.
- Provide purchase price amount.
- Enter the down payment amount.
- Enter the borrower’s Homeowners Insurance Policy.
The pre-approved home loan options displayed online will give the borrowers the lowest interest rate and fee loan guarantee based on their credit, income, and terms of their loan request.
Based on all the National lenders in our system, the app will identify the lowest rate and fee pre-approved online home loan.
Regarding their finances, securing their loan amounts at the lowest interest rate possible in just one step will give them a financial situation and the ability to safeguard their finances.
Rates 1% lower than most banks at Equifund Mortgage® | See real pre-approved loan offers.
Get Pre-Approved Online. See Loan Offers in 3 minutes.
Required income and assets documentation to process a Verified Mortgage Pre-approval
- Income Verification: 1 Month of most recent pay-stubs
- Verification of Assets: Checking and Savings Account
- Last two years’ W-2 or Tax Returns
- Identification: Drivers License
- Credit score check for Verified Mortgage Preapprovals
- Business tax returns
- Purchase contract
- Current mortgage statement
- Other financial information may be requested.
After reviewing the loan options and the borrowers selecting the preferred loan program, FHA Loans, VA Loans, Conventional Mortgages, or Jumbo Loans online, the next step in the mortgage application process is to upload documents that verify their income and assets.
Upon receipt of these documents, a Home Loan Specialist will review each item and pull a full credit report to issue a credit, income, and asset verified mortgage preapproval in less than 24 hours.
What documents will borrowers receive after requesting a Verified Mortgage Pre-approval?
After the borrowers submit all required documents, like income and assets, a home loan specialist will review each document to verify that they satisfy the requirements per underwriting guidelines to meet their home financing needs.
After review of the borrowers’ submitted documents, a home loan officer will run an automated underwriting application using Fannie Mae or Freddie Mac desktop underwriter or loan prospector.
When the automated underwriting application returns a loan approval, the borrowers will receive initial loan disclosures, like the Loan Estimate, Truth-In-Lending, Servicing Disclosure, and Initial loan application.
No credit pulls, spam calls or emails. Just stupid low rates.
Get Pre-Approved or Try the Mortgage Calculator.
Summary of Soft Pull Mortgage Pre-Approvals:
Soft mortgage approvals have revolutionized the home loan process, offering a simplified and efficient alternative to traditional mortgage applications.
Home buyers can confidently navigate the housing market with faster assessments and increased certainty.
While not binding, soft mortgage approvals provide invaluable insights contributing to a smoother path toward home ownership.
If borrowers are considering buying a home, it's worth exploring the benefits of soft mortgage approvals and discussing them with their lender.
