Texas A Place to Call Home : Pre-Approval vs Prequalification What does it really mean

Pre-Approval vs Prequalification What does it really mean

 Pre-Approval vs Prequalification What does it really mean

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Are you considering purchasing a new home, you may be thinking about what type of financing is available?

 

Finding the right loan is a huge step in the home purchasing process. There is no need for it to be filled with stress.

 

 

Lenders in general offer what is called a prequalification, pre- approval or possibly both which will help you better understand the loan type that will work best for you.

 

 

Let’s talk about what the difference is between each of these.

 

 

 Prequalification is an estimate of what you can afford based solely on the information you have provided the lender  

This is only a rough idea of what you can expect in mortgage payment and loan amount. Credit and employment information usually are not validated in the prequalification process.

This also gives us a well-rounded ideal of the house type we need to be looking at.

 

REMAX UTOPIA GREATERTEXOMA.COM

 

 

  • Pre-Approval is very different that prequalification process. In the preapproval process the lender gives a written commitment to finance the house purchase at a agreed upon amount

 

This tells us that the lender has taken a close look into your financials and agreed to lend you a set amount of funds. Which is reliant on details of the finalized sales contract and several other items.

This step of PREAPPROVAL means that the buyer is serious and lets the seller know you can do what you said you can do.

 

 

Either option which ever works best for you will take you into the process of purchasing a home with a leg up to show the seller you are a serious buyer.

Getting set with the loan type first is always a good plan, allows you to better understand what you will need to do and what type of house you need to be looking for. Which is part of what we do to help you in this process.

 

Give us a call and let’s talk Real Estate. 

 

 Pre-Approval vs Prequalification What does it really mean

 

 

 

 

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Laura D Filip Broker/Owner CRS,CHMS,CNHS,RCC

 903-271-4978 cell phone text messages

855-483-9662 office contact number

www.GreaterTexoma.com

 

Education is the first step to success and then action is needed to Succeed.

We are here to help with all of your Real Estate needs.

 OBSTACLES ARE THINGS A PERSON SEES WHEN HE TAKES HIS EYES OFF OF THE GOAL.  E. Joseph Cossman

 

 

Comment balloon 1 commentLaura Filip • August 01 2016 03:19PM

Comments

Laura Filip RE/MAX UTOPIA | 903-271-4978 Thanks for the very good report on pre-approval vs. qualification.

Posted by John Pusa, Your All Time Realtor With Exceptional Service (Berkshire Hathaway Home Services Crest) about 2 years ago

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