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Pre-Qualified vs. Pre-Approved

It is becoming more and more common amongst home buyers to pursue most to a brand home. Instead of going through the of scouting out a neighborhood or collecting flyers, intelligent buyers are instead making a first stop. Instead of spending hours on the , getting the is becoming a much more and simpler way to pursue a home.

 

 

 

Indeed, getting a financial frame of reference for your home search first can greatly cut down on the of you spend looking through ads and walking through properties a . are often the most time-consuming parts of a home search and by simplifying at least somewhat, you can spend more time on homes suited to your financial situation.

However, has been some misconception over the difference between getting for a particular amount and getting pre-approved for a particular purchase price. These terms mean very and as a is looking over your offer, each term conveys something different and has a very different impact on that offer. 


 

What Is Pre-Qualification?
In both processes, a lender take down your and provide you a rough estimate of what you can to pay for a home. A exercise can be seen as more of a rough draft of what you might be able to . While a lender will ask for your financial information, the lender will not typically go through the process of verifying your information or doing more research into your financial viability.

If you tout that you have been pre-qualified for a particular amount, it is certainly better than not having any idea of what you can afford. However, it says nothing about your actual ability to get a loan for that amount and instead says that you probably get a loan for that amount. If a seller sees that you are pre-qualified for an amount approximating the sale price of the , that does communicate some amount of credibility but not the credibility pre-approval suggests.
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What Is Pre-Approval?
In contrast to pre-qualification, pre-approval is given to a potential buyer by a lender that has done significant homework into your financial history and has agreed to loan you the amount you have been pre-approved for. This more than pre-qualification and communicates very clearly that your finances are in and you are in prime position to a property that falls within the range of the pre-approved figure.
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a seller sees that you have been pre-approved for the amount of the sale price, that seller takes your offer as a much more credible prospect than a contract that does not have pre-approval attached. Not can pre-approval save you time during the search for a home, it can save you time when you eventually find that property. Pre-approval saves the time typically taken to secure financing after an offer is made and can often deliver a home to a potential buyer quicker.

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As you ponder beginning a search for a first or new home, it is a great idea to first see a lender that can examine your financial situation and you an idea of what of home you can afford. When you take that meeting, ask about what it might take to get pre-approved for the amount the . Pre-approval not only shortens your search but conveys a sense of credibility in your offer to a home seller that you cannot achieve through pre-qualification or through pursuing the home first and financing second.This is another original article by Ernst Georges, co-owner of Yanex Real Estate Investing, LLC at http://www.yanexhome.com/. Are you looking for an experienced Brooklyn, Queens, Long Island New York Investors? With a based, experience, Ernst Georges and Partners work hard to serve home buyers and sellers for the Kings, Queens, Nassau and Suffolk Counties and surrounding areas.

 

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