Pre-Qualification vs. Pre-Approval
One sure way to reduce stress during the process of home buying and to be competitive in a busy real estate market is to seek a Pre-Approval. Buyers who are pre-approved are considered a stronger buyer than their pre-qualified counterparts
-Pre-qualification is not a loan commitment from a lending institution; it is only a loan agent’s opinion that you may be able to obtain financing. Virtually anyone can achieve pre-qualification status.
-Pre-approval, on the other hand, signifies that the application has been taken through a rigorous procedure. Pre-approved buyers enjoy these benefits:
1. If you make an offer on a home and then apply for a loan, you are at the lender’s mercy. The lender sets the interest rate and points, aware that you do not have time to shop around to compare costs.
2. Pre-approval saves time spent looking at houses you can’t afford.
3. If you rely on your lender to tell you what you can afford, you may end up with a high mortgage payment. Most people can qualify for more than they feel comfortable paying.
4. Having a pre-approval letter from a lender gives you an edge when multiple offers have been made on a house. You are the Best buyer when you have a pre-approval in hand.
5. Pre-approved buyers can usually close more quickly. Once you submit your credit package and supporting documentation, most of the work has already been done.
Call 800-693-0001 to obtain your FREE pre-approval and to receive sound advice about all of your mortgage finance options.
Contact me today if you are ready to begin your journey to homeownership. I am available to answer any of your real estate questions and am able to guide you through the home buying process.
I service all of South Eastern Massachusetts including, Abington, Berkley, Brockton, Bridgewater, Canton, Dighton, Easton, East Bridgewater, Franklin, Freetown, Holbrook, Lakeville, Norton, Somerset, Stoughton, Taunton, and West Bridgewater and I am happy to help.
Kim LaCivita, REALTOR® 