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Pre-Qualified vs. Pre-Approved

is becoming more and more common amongst potential home buyers to pursue the most efficient route possible to a brand new home. Instead of going through the process of scouting out a neighborhood or collecting flyers, intelligent buyers are instead making a lender their first stop. Instead of spending hours on the wrong home, the is becoming a much more popular and simpler to pursue a home.

 

 

 

Indeed, a frame of reference your first can greatly cut down on the amount of time you spend looking through ads and walking through properties with a estate agent. These are often the most time-consuming parts of a and by simplifying them at least somewhat, you can spend more time on homes better suited to your situation.

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


 

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

If you tout you have been pre-qualified for a particular amount, is certainly better than not having any idea of what you can . However, says nothing about your actual to get a for amount and instead says you could probably get a for that amount. If a seller sees that you are pre-qualified for an amount approximating the sale price of the property, that does 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 has done significant homework into your financial history and has agreed to you the amount you have been pre-approved for. This more weight than pre-qualification and communicates very clearly your finances are in order and you are in prime to buy a property 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. can pre-approval save you time during the search for a home, can save you time 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 kind of home you can afford. you take that meeting, ask about what it might take to get pre-approved for the amount the lender suggests. Pre-approval 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 ? With a based, business 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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