Pre-Qualification vs. Pre-Approval

By
Mortgage and Lending with Waterstone Mortgage Corporation

Pre-qualification vs. Pre-approval

Identify your property price range, and strengthen your bargaining power by understanding the difference between these two buyer tools.

 

How do I know what price range to look in, and how do I make sure my offer is accepted?

 These are two of the most commonly asked questions from first-time and experienced homebuyers alike. One of the best places to start is by getting pre-approved by a lender upfront in the process. Not only does it give you peace of mind knowing your price range is already pre-approved by the lender, but strengthens your position at the negotiating table, especially in a multiple offer situation.

Some lenders offer pre-qualifications and pre-approvals. Here`s the difference:

Pre-Qualification

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Provides a ballpark estimate of your buying power.

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Is based on summary information you provide on your income and assets.

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Requires a satisfactory review of property, financial documents and program requirements to issue final approval.

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Is offered by most lenders.

 

Pre-Approval

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Provides proof to real estate agents and sellers you`re pre-approved for a specific loan amount.

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Is based on verification of your income, credit and assets.

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Requires a satisfactory appraisal and title review. No change in financial condition for final approval.

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Is offered by us as a service to you at no cost before you find a home.

To get pre-approved call:

 

Andy Burton, Mortgage Advisor ~ www.andyburton.biz

         (612) 562-6456| (715) 760-0259 | andy@andyburton.biz

1811 Weir Drive Ste 145, Woodbury, MN 55125 | NMLS# 285599

  Equal Housing Lender. Information is subject to change without notice. This is not an offer for extension of credit or a commitment to lend.

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Comments (2)

Nancy Fraser
Exit Realty Premier - Massapequa Park, NY
Realtor, Massapequa Homes for Sale 516-729-0278

Andy, Pre-approval is the only way to go in this market.

Jan 28, 2011 12:01 PM
Andy Burton
Waterstone Mortgage Corporation - Woodbury, MN
I agree, but a lot of lenders don't take the time.
Jan 28, 2011 02:53 PM