Some of you looking to purchase a home may be wondering how a a pre-qualification differs from a pre-approval.

A Pre-Qualification letter essentially means you spoke to a lender about your desire to purchase a home...You let them know what your income is and your monthly obligations are (car payment, personal loan, child support, etc.). They may or may not run a credit report. Obtaining a pre-qualification letter is basically a quick conversation on the phone to see what you "may" (keyword is "MAY") be able to qualify for. It's simply an estimate.

A Pre-Approval letter requires a bit more work. This also starts out by a conversation with a lender; however, obtaining a pre-approval letter requires some documentation to support your information. You will need to provide things like your W-2's, last two pay stubs, bank statements, etc. A credit check will also be performed upon requesting a pre-approval letter. This will provide a much more accurate estimate as to what you will realistically be able to borrow, should you find the home you are looking for.

So....Long story, short...When it comes down to it. Try to obtain a Pre-Approval for a mortgage as it will make your actual offer a stronger and more desireable offer. More importantly, it will give you the ability to search for a home with more confidence in obtaining the financing you'll need to make the purchase!

Please feel free to contact me with any questions you may have about the area or if you'd like me to send you the current active listings in the area. I look forward to hearing from you!

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Call me at 317-889-1111 or email me at chandasellsindy@sbcglobal.net