Pre-Qualification vs. Pre-Approval

Real Estate

PRE QUALIFICATION VS. PRE APPROVAL 

ONE SURE WAY TO REDUCE STRESS DURING THE PROCESS OF HOME BUYING IS TO SEEK PRE APPROVAL.  BUYERS THAT ARE PRE APPROVED ARE TAKEN MORE SERIOUSLY THAN JUST PRE QUALIFIED INDIVIDUALS. 

PRE QUALIFICATION IS NOT A LOAN COMMITMENT FROM A LENDING INSTITUTION.  IT IS ONLY A LOAN AGENT'S OPINION THAT YOU WILL BE ABLE TO OBTAIN FINANCING.  VIRTUALLY ANYONE CAN ACHIEVE PRE QUALIFICATION STATUS.  PRE APPROVAL, SHOWS THAT THE POTENTIAL BUYERS HAVE BEEN TAKEN THROUGH A RIGOROUS PROCEDURE, AND ARE QUALIFIED TO PROCEED WITH A PURCHASE IN THEIR PRICE RANGE.  

PRE APPROVED BUYERS ENJOY THE FOLLOWING BENEFITS:  

1.  IF YOU MAKE AN OFFER ON A HOME AND THEN APPLY FOR A LOAN, YOU ARE AT THE LENDER'S MERCY.  HE SETS THE INTEREST RATE AND POINTS, AWARE

THAT YOU WILL NOT HAVE TIME TO SHOP WITH OTHER LENDERS.  

2.  PRE APPROVAL SAVES TIME IN LOOKING FOR A HOME.  YOU WILL NOT SPEND TIME LOOKING AT PROPERTIES NOT IN YOUR PRICE RANGE.  

3.  HAVING A PRE APPROVAL LETTER FROM YOUR LENDER WILL GIVE YOU AN ADVANTAGE WHEN MULTIPLE OFFERS ARE MADE ON A HOME YOU WANT. 

4.  PRE APPROVED BUYERS CAN GENERALLY CLOSE ESCROW MORE QUICKLY.  ONCE YOU SUBMIT YOUR CREDIT PACKAGE MOST OF THE LEGWORK HAS ALREADY BEEN DONE. 

 

CALL ME WITH ANY ADDITIONAL QUESTIONS.  

MAHALO