My wide eyed client asked me, “Is it better to be pre-approved or pre-qualified?”

I had to say a resounding PRE-APPROVED! 

Being Pre-Approved puts you, the buyer in a better position when a seller is presented with multiple offers.  Your offer will look more attractive to the seller and the seller’s agent who is rightfully looking out for the seller’s best interest.

To be Pre-Approved means that you have already submitted all paycheck stubs, past tax returns and other required documents to your lender to shuffle through. The lending company process cannot happen in a few days.

Being pre-approved means that you will know the maximum amount of money you can borrow.  Now you know the price range of the houses you can consider.

What can happen within a day, hour, or even minutes is that another contract can be submitted on the house of your dreams. This contract can be more attractive than yours because you are sitting around waiting to be pre-approved.

Be proactive and get pre-approved.

 

  Sussie Says…

Representing Buyers and Sellers in Friendswood, Clear Lake, Pearland, Webster, City of League City, and the Houston Bay Area.

Call 713-822-1655.

 

  

                                          

 

 
Posted by Sussie Sutton on 08/10/2012 09:42 PM   Comments (12)   in the ActiveRain Channel   pre approval, pre qualified, mortgage loans, pearland, friendswood  
Short URL: http://actvra.in/Gcv
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12 Comments on “Is it better to be pre-approved or pre-qualified?”

AUG
10
392,467 Points Outside Blog

Depending on the price point down here, you better have all cash in your pre-approval letter.
9:45pm • #1
395,891 Points 5 Featured Posts Outside Blog Attended Rain Camp

Pre-Ap[proved run only to the buyer.  The house may not qualify for whatever reason per FHA or maybe it wsa built on a mudsill or too much acreage.  But, I do get your point.  I have seen people confuse the issue/difference a lot.
10:01pm • #2
300,450 Points

So right on, a prequal means nothing to us just means that you had a talk with a lender.
10:02pm • #3
795,314 Points 5 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Yes, it's a good thing the buyer at least asked you so you could educate the buyer.
11:19pm • #4
AUG
11
1,519,871 Points 275 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp Called Shot Master

Good morning, Sussie.....good post for every buyer to read..... without a pre-approval, there will not be a signed offer by any seller of ours....
3:54am • #5
387,162 Points 3 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Preapproved is the right answer! Prequalified is a" bunch of hot air". SUGGESTED!
6:09am • #6
475,907 Points 35 Featured Posts Called Shot Master

Good morning, Sussie. I'm having this discussion with a buyer right now. Most of the buyers seem to get it, but this one is stubborn and refusing to understand this.
6:45am • #7
465,928 Points 8 Featured Posts Outside Blog Called Shot Master

Winston: You are right! Cash is King!

Gary: Getting Pre Approved can get you across the first hurtle first, second house is getting the house to appraised!

Charles: I feel sorry for the buyers sometimes. They just know they have good credit, but they forgot all the dings to their credit and didn't they just purchased a new truck? They had to have to buy a truck...right?

Michelle: The great thing was they were pre approved! A year before they had attempted to put the cart before the horse.

Barbara: I try so hard to make sure they are all pre approved. Down here there seems to be some kind of fear of being approved prior to seeking out a new home!

Rob: You are right!!! And thanks for suggesting!

Debbie: He will understand when the house of his choice slips through his fingers.
7:12am • #8
637,684 Points 53 Featured Posts Outside Blog Called Shot Master

Hi Sussie,  Being pre-Approved is such a better way to go.  Some of the lender letters I see make me wonder if the buyer has even really talked to the lender.  Pre-approved makes all the difference.
8:16am • #9
407,413 Points 1 Featured Post Outside Blog Called Shot Master

Sussie,

             Right on! Pre- approved is so much better a pre-qual no offense to anyone sometimes is not worth the paper it is written on. I hope you are having a great weekend!
2:18pm • #10
356,724 Points 16 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

You are so right, Sussie! A buyer who has gone the extra mile to get a pre-approval is a QUALIFIED buyer and a much better prospect to a seller than someone who has only been pre-qualified.
8:48pm • #11
465,928 Points 8 Featured Posts Outside Blog Called Shot Master

Belinda: Some buyers just refuse to get pre approved. I don't understand it.

Yolanda: Maybe a long time ago it was okay to be pre-qualified but now... it really is not worth the time.

Rose: Buying a home is akin to playing a game of chess, you plan your moves not wait until someone moves you!
8:54pm • #12


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