Buying a home in Indiana The Lender Pre- Qualification and Pre-approved The difference and does it really matter?.
What’s the difference between pre-qualification and pre-approval?
Pre-qualification is a simple and fast process. The buyer is asked specific questions about their income, assets and liabilities. They will run a credit report to see if your credit qualified to buy. Based on this information, they are provided with an amount for which they may qualify. This process can be done strictly on a over the phone or over the internet. This will also tell the buyer the price range of a house they can qualify to buy.
A pre-approved buyer is one who is actually approved for a loan of a certain amount. Preapproved buyers are what Sellers and Real Estate Agents Like to see. The pre-approval process is much more involved. The borrower will provide proof of income, assets and liabilities and this information will be verified by the lender. Because of this verification, pre-approved buyers are much more attractive to sellers than pre-qualified buyers. A Pre-Approved Buyer can close much faster because they have already went through the loan process.
When starting your home search start with getting pre qualified at the very least so you will be looking at homes with your Real estate agent that you actually qualify for.
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