Pre-Qualified or Pre-Approved: What Does it All Mean?

2011 is just around the corner, and it will be a great opportunity for first-time buyers to start looking for the Hoboken home of their dreams.

It is important to remember that before you start looking at houses, contact a real estate professional who can get you pre-qualified for a loan or go one step further and get pre-approved.

Being pre-qualified means that you have talked to a lender or mortgage broker and verbally given them some information that allows them to make an informal determination of the amount of mortgage you can afford. The decision is based on the information you tell them.

Being pre-approved is a guarantee in writing from a lender or mortgage broker that you will be granted a loan up to a specified amount based on information you have told them and based on information they have requested from you as proof of your financial situation.

There are advantages to being pre-qualified for a loan prior to looking at houses:

1)    Many realtors will not show you property without a pre-qualification letter.

2)    Sellers will find your offer on a home much more inviting if they know you are already pre-qualified.

3)    The length of time between signing the contract and closing on the transaction can be shortened if you are already pre-qualified.

For help in getting pre-qualified, as well as finding and closing on your perfect Hoboken home, contact Eddie Perez, Broker-REALTOR, CDPE. Eddie’s market includes Hoboken, a progressive city  where they’re always coming up with new ways of making it a better place to live, Jersey City, Weehawken and Union City. Eddie can also be reached by phone at 201-344-2886.