Preapproval is not Prequalified...it's better
If you Google online prequalification, links to banks and calculators fill the first page. Some of the links promise prequalification for a mortgage in ten minutes or less. But what does that prequalification give you? 
Prequalification is a small first step when buying a home. You can be prequalified online or over the phone. You supply basic information about your income, debt and assets and a lender gives you an idea of the mortgage amount you qualify.
Prequalification does NOT include
- credit report
- in depth analysis of credit report
- discussion of financial obligations like alimony, child support or elderly support
- analysis of taxes if you own a business
This last point, the way you structure your business, is critical. Successful business owners are often surprised when they do not qualify for a mortgage. It is critical to have an excellent mortgage lender who can discuss mortgage options with you, especially if you own a business.
Preapproval does include
- an official mortgage application
- lender will ask you for extensive documentation regarding your finances including alimony & child support
- credit rating will be checked and evaluated
- lender will provide a preapproval letter explaining your specific mortgage amount
- you will also have a solid idea of the interest rate for your loan
- possibly lock in an interest rate for your mortgage
Preapproval provides the framework for your house tours and automatic updates. As Exclusive Buyer Agents, we want our home buyers preapproved. That way, there is no delay for our home buyers. If they tour a house they love, we can write an offer a few hours later.
The housing market in Maryland, including Rockville, Bethesda, Silver Spring and Kensington is challenging for home buyers. Good homes are not staying on the market for more than a few days. When our clients see a home they want to buy, we have to be ready to go!
The housing market in Washington D.C. is competitive. Home buyers have to be preapproved and ready to write an offer. We are seeing multiple contract offers on homes within a day or two of the house coming on the market. Home buyers who are not prepared, with a preapproval letter, will not be competitive in D.C.
The housing market in Virginia is competitive in Arlington and Alexandria. In Burke, Manassas and out to Leesburg, homes for sale are sitting on the market a little longer.
Preapproval is the first step to buying a home
Second step is calling Buyer's Edge and working with an Exclusive Buyers Agent
Marshall Henderson is a licensed Realtor in Virginia, Maryland and Washington D.C.
Exclusive Buyer Agent with Buyer's Edge
Victoria Henderson is a licensed Realtor in Maryland, Virginia and Washington D.C. and Associate Broker with Buyer's Edge
Victoria & Marshall Henderson are members of the National Association of Exclusive Buyer Agents
Buyer's Edge 4849 Rugby Avenue Bethesda Maryland 20814 office 301.657.1475 cell 301.922.1677
Comments (6)Subscribe to CommentsComment