Saturday, February 7, 2015

Mortgage Pre-Approval vs Pre-Qualification - Why you need to get Pre-Qualified BEFORE Buying A Home

Buying a home can seem like a daunting task. As one of the largest purchases most of us will make in our lifetimes, we want to be sure that we are getting the best deal on the best home in the best neighborhood to suit all of our needs.

Buying a home is much like building a home; first you lay a foundation by finding an agent to represent you and finding a lender to help you begin the mortgage process. A great agent and a great lender will help your home buying process go smoothly by laying a solid foundation and then assisting you through each layer of the purchase process, until you end up with the final result - a beautiful new home for you to live in and enjoy for years to come!

As a Buyer's Agent, the first step I ask clients to take (after our initial consultation) is to meet with a qualified lender to seek pre-approval for a mortgage.

A pre-approval is not the same as a pre-qualification!
A pre-qualification is a ballpark estimate of buying power based on a quick questionnaire by the lender. It is not a solid document and does not guarantee that the buyer will actually be able to get a loan in the end.

A pre-approval provides proof to the Real Estate Agent and sellers that they buyer is pre-approved for a specific loan amount, and the required guidelines (income, credit and assets) have already been verified or underwritten. This alleviates any questions the seller may have, such as "what if we agree to sell to you and you can't actually get a loan?"

As you can imagine, having a pre-approval already in place puts they buyer in a much better position to negotiate on a home as the seller and  Agents involved know that the buyer can actually get a loan, where as a pre-qualification does not offer the same level of assurance.

The Foster Beckman Group works with lenders who will pre-approve our buyers before we even begin the buying process, often in as little as 7 days.

The Foster Beckman Group would love to help you find your new home or sell your current home. We work closely with all of our home buyers and sellers to help you find the right home at the best price for the least amount of stress! Call us today at 702.686.2695.