Know the difference: Pre-approval vs. Pre-qualification

By
Real Estate Agent with RE/MAX Leading Edge 009518239

How much home con you afford? How do you even begin to find the answer to that question? You've probably heard terms like "pre approval" and "pre-qualification" tossed around, but do you understand the critical difference between those two? If your answer is "no" then please read on to avoid major disappointment when you make your offer.

 "Pre-qualification" is a fine place to start, but if you're really serious about the time and money you're going to invest in purchasing a home, you'll really want to focus on "pre-approval". Approval, and not just qualification, is secured when you complete and submit a loan application, along with the appropriate documentation and fees.

The lender will review your application and paperwork, and will notify you of just how much financing you can secure. Only then will you have the confidence to make your home choice and make your offer.

A pre-qualification, on the other hand, is a more informal, and only an estimate of the funds for when you might qualify after applying for a loan. You might make an offer with pre-qualification in hand, but it's no guarantee that your loan application will be accepted.

The seller's representative will have educated the seller about this critical difference, so make them an offer they can't refuse! Pre-approval puts you in the driver's seat, so get ready to move!

Posted by

Laurie Randazzo

BROKER, REALTOR®, MBA

 Board Of Director -Women's Council Of Realtors Northern Region

RE/MAX Leading Edge

2 Mount Vernon Street

Winchester, MA 01890

cell: 617-512-4581

www.HomesNorthOfBoston.com

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