Why Get Pre-Qualified?

Why Get Pre-Qualified?

1. Pre-qualification acts as a dry run of the loan application process. It is different from and not as good as a “Pre-Approval”.  You need to understand that these terms (Pre-Qualified, Pre-Approved, Conditional Approval and Verified Approval) are NOT interchangeable.  Many buyers lose their Dream Home because their real estate agent didn’t take the time to discuss and prepare them. With a “Pre-Qualification” The mortgage lender will use the details you provide about your credit, income, assets, and debts to arrive at an estimate of how much mortgage you may be able to afford. The whole process may take only minutes but can take a few hours (if you play phone tag) at most, and it is free.  For more information on the differences and levels of the approvals click here!

2. While a “pre-qual” is good to have, it is non-binding to the lender (because the information you provide has not been verified), it does serve as a fair/ballpark indication to potential sellers of your general creditworthiness, however, it is the lowest form of “credibility”.

3. These days most sellers will NOT accept an offer without at least a pre-approval letter, so if you are serious about buying this is the first step towards getting you in your new home.

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