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Pre-Qualified vs. Pre-Approved

It is becoming more and more to pursue the to a brand new home. Instead of going through the process of scouting out a or collecting flyers, intelligent buyers instead making a lender their first stop. Instead of on the , getting the sale price first is becoming a much more popular and simpler to pursue a home.




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

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


What Is Pre-Qualification?
In both processes, a lender take down your financial and provide you a rough estimate of what you can afford to pay for a home. A pre-qualification 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 typically go through the process of verifying your or doing more research into your financial viability.

If you tout that you 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 , 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 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 weight than pre-qualification and communicates very clearly that your finances are in and you are in prime position to buy a property that falls within the range of the pre-approved .
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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 only can pre-approval save you time during the search for a home, it 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 quicker.

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As you ponder beginning a search for a first or new home, it is a idea to first see a lender that can examine your financial situation and give 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 , co-owner of Yanex Real Estate Investing, LLC at http://www.yanexhome.com/. Are you looking for an experienced Brooklyn, Queens, Island New York Investors? With a service 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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