The Arizona prequalification form, also known as the AZ prequal form, is released by the Arizona Association of Realtors (AAR) and is a vital component of the Arizona home buying process. A confirmation that a lender is willing to give you a mortgage loan, the prequalification form gives you an edge over other homebuyers in your area.
Given Arizona’s highly competitive market, getting pre-qualified can determine whether you achieve your dream home or must keep looking.
Read on to learn more about the Arizona prequalification form, gain helpful tips on how to get your prequalification letter, and get answers to frequently asked questions about the prequalification and preapproval process.
What Is a Pre-Qualification Form?
After submitting a pre-qualification form, the lender will decide whether or not you meet the initial criteria required for a certain loan amount. They’ll conduct a basic review of your finances, including bank statements, credit, tax documents, pay stubs, and more.
Pre-approval doesn’t translate to a guaranteed loan offer. Still, it proves you have the qualifications necessary to pay your loan based on certain assumptions from the information provided.
What Is The Difference Between Pre-Qualification and Pre-Approval?
While the mortgage pre qualification form and a pre approval letter may seem identical, the biggest difference is that pre approvals are a longer and more detailed process which means you’ve been tentatively approved for a specific loan amount, while the Arizona pre qualification form is more of a fundamental review. You can think of the Arizona prequalification form as the first step in the process, mostly letting you know how large of a mortgage you might qualify for.
You need to be familiar with your potential lender’s preapproval process to know which form you need; however, if you submit the AZ prequal form to one lending organization, and different lenders need it, you can provide the same form.
What a Prequalification Form Includes
Your Arizona prequalification form will include the following info:
- Marital status
- If you’re selling another property to pay for this one
- If you’re relying on the seller to pay closing costs
- What loan type you’re approved for
- What type of property you can buy
- Whether this will be a primary residence, secondary residence, or investment
- The other documentation you have submitted
You can get the prequalification form PDF from the AAR website for free; all you have to do is download the form online, use the PDF program of your choice to fill it out and sign it, then print, email, or fax it to your loan servicer for review.
Supporting Documents for the AZ Prequal Form
In addition to the Arizona pre-qualification form, you’ll need to provide some supplemental information.
Identity verification: Provide your driver’s license, Social Security number and authorization for the lender stating that they can pull your credit score.
Proof of income: You must include W-2s and tax returns from the Internal Revenue Service and the Arizona Department of Revenue.
Employment verification: Besides your proof of income, lenders often call your company to verify that you’re working at your stated income.
Proof of assets: Include bank statements that show you have the requisite money for closing costs, down payment, and cash reserves. If you’re not going to put down 20%, you will need Private Mortgage Insurance, so you’ll need money for that too.
Loans and assets: If you have a 401K account or investments, provide statements of the past two months. You’ll also need statements regarding any loans or debts you have.
Credit score: Lenders are looking for a credit score of 620 or higher. If your credit score is lower, you must explore FHA loans instead.
Frequently Asked Questions About AZ Pre Qualification Form
Do You Actually Need to Make a Prequalification Application?
While it’s not necessarily a requirement, the Consumer Finance Protection Bureau notes that many sellers require these forms before accepting your offer on a home, and most real estate agents prefer to see some form of prequalification letter before they start working with you.
Our advice is that if you need help deciding whether to get a prequalification or preapproval letter, decide to do it just in case: it can save you a lot of heartache.
Does a Pre-Qualification Mean You’re Approved?
No, it doesn’t mean approval. You can think of it like a loan or credit card application: when a credit card offer mentions that you’re pre-approved, it typically means that you’ll qualify for it, but you still need to fill out the application anyway.
What Does an AAR Prequalification Form Do?
The AAR prequalification form, also known as the Arizona prequalification form, lets agents, lenders, and sellers know that you have the income, credit score, and other circumstances that make you more likely to qualify for a loan. It can also reassure sellers that you will likely get approved for a mortgage.
Can I Make an Offer With an AAR Prequal Form?
Yes, you can! An AAR prequal document will be part of your offer package, showing that you have the necessary income and assets to qualify for a loan. However, some sellers may need more than the Arizona prequalification form to accept your offer.
What Happens After I Fill Out the Arizona Prequalification Form?
Once you’ve submitted the document, you’ll wait for the lender to fill the rest out and prequalify you, letting you know you’re eligible for the actual application process. You can take this letter along when you start looking with a realtor and when you put an offer in on a home. Your agent will submit this along with the Arizona Residential Real Estate Contract with your offer.
Does Pre-Approval Expire?
Yes. Generally, a prequalification or preapproval letter is only suitable for 30-90 days. Some lenders only accept one issued within a month, while others have a more extended grace period. However, if your circumstances haven’t changed, you can complete another prequalification form.
District Lending is Here to Help
Mortgage forms can be confusing, but you’ve always got support. As the premier mortgage broker in Arizona, District Lending provides a full suite of services to help buyers feel empowered and ready to tackle home buying head-on.
Ready to get started? Contact us today!
