Wal-Mart.com USA, LLC

Pre-Qualified vs. Pre-Approved

It is becoming more and more common amongst buyers to pursue efficient route possible to a brand . Instead of going through the process of scouting out a or collecting flyers, intelligent buyers instead making a lender first stop. Instead of spending hours on the wrong , getting the first is becoming a more popular and simpler to pursue a .

 

 

 

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

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


 

What Is Pre-Qualification?
In both processes, a lender will take down your and provide you a rough estimate of what you can afford to pay for a home. A exercise can be seen as more of a rough draft of what you might be able to afford. While a lender will ask for your financial , the lender will not 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 get a loan for that amount. If a seller sees that you are pre-qualified for an amount approximating the sale price of the property, that does communicate some amount of but not the pre-approval suggests.
Great Bargains on Swann Refurbished Surveillance Camera Systems
What Is Pre-Approval?
In contrast to pre-qualification, pre-approval is given to a by a lender that has done significant homework into your and has agreed to loan you the amount you have been pre-approved for. carries much more than pre-qualification and communicates very clearly that your finances are in order and you are in prime position to a property that falls within the range of the pre-approved figure.
Great Deals on Global Flights!Get up to $20 off with promo code INT20.Book Now!
When 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.

Lycamobile - Refer a Friend

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 kind of home you can afford. When you take that meeting, ask about what it might take to get pre-approved for the amount the lender suggests. 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 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.

 

Wal-Mart.com USA, LLC

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.